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Small and medium-sized enterprises (SMEs) are a cornerstone of Africa's economy, accounting for roughly 90% of businesses and providing 80% of employment. Yet, many face barriers such as stringent collateral requirements, long approval timelines, and limited access to traditional financing. Emerging blockchain-powered solutions are now offering more flexible, inclusive ways for SMEs to access capital, manage cash flow, and scale their operations.
As SMEs continue to encounter hurdles such as stringent collateral demands, prolonged approval timelines, and limited traditional financing options, blockchain-powered financial solutions are emerging as flexible and inclusive alternatives that enable entrepreneurs to scale their businesses on their own terms.
"Financial innovation is helping break down barriers for small businesses," said Yande Nomvete, Operations Manager at Binance Africa "From crypto-backed lending to tokenised financing and Web3-based investment models, SMEs now have more options to access capital and manage growth efficiently."
Crypto-Backed Lending
Crypto-backed lending allows entrepreneurs to use digital assets, like Bitcoin or stablecoins, as collateral for business loans without selling their holdings. Blockchain-based verification and automated risk management streamline approvals, reduce collateral thresholds, and provide access to lenders globally. This flexibility helps SMEs manage cash flow, fund projects, and pursue growth while maintaining long-term investment strategies and growth opportunities without disrupting their long-term investment strategies.
Tokenised and Venture-Based Financing
Crypto-focused venture capital is supporting startup growth across fintech, AI, supply-chain management, digital identity, and creative services. In 2025, crypto companies raised over $16 billion in venture funding, up from $13.6 billion in 2024. Token-based investment structures allow founders more flexibility in ownership and governance, while on-chain funding mechanisms enable access to a broader pool of global investors. These transparent, borderless approaches reduce friction and open opportunities for emerging-market entrepreneurs who may previously have lacked access to early-stage capital.
New forms of blockchain-powered financing are also taking shape. Tokenised asset financing enables SMEs to convert real-world assets like inventory, receivables, and equipment into digital tokens that can be sold or used as collateral on global marketplaces, unlocking liquidity with less friction. Similarly, revenue-based financing powered by smart contracts gives businesses a way to raise funds in exchange for a share of future earnings. Payments are automated on the blockchain, creating transparency, reducing administrative burdens, and providing non-dilutive funding tied directly to performance.
Web3 Crowdfunding and Community Building
Entrepreneurs are also turning to Web3 crowdfunding, where token launches, membership NFTs, and decentralised funding pools make it possible to raise capital directly from global supporters. This model not only provides funding but also builds a loyal and engaged community around a business from day one.
Stablecoins and Cross-Border Payments
SMEs engaged in international trade are increasingly adopting stablecoin-based payments, which enable faster settlement, lower foreign-exchange costs, and protection against currency volatility. In Sub?Saharan Africa, stablecoins accounted for 43% of all crypto transaction volume in 2024, highlighting how deeply they are becoming embedded in business operations. Globally, Binance Pay revealed that stablecoins account for over 98% of B2C payments - highlighting their growing role as the preferred payment method.
Blockchain-Enabled Supply Chain Finance
The rise of blockchain-based supply chain financing is further strengthening SMEs' ability to operate and scale. By using tamper-proof on-chain data to verify deliveries, product authenticity, and transaction history, businesses can access more affordable and efficient financing options. This increased transparency reduces lender risk and enhances liquidity for suppliers, distributors, and manufacturers. In 2024, over 60% of Fortune 500 companies reported that they incorporated blockchain into at least one segment of their supply chain operations. Most recently, over 62% of enterprises using blockchain supply chain finance said that the technology improved payment
settlement speeds by more than 40%.
"We believe that ongoing advancements in blockchain adoption and the crypto industry, such as Binance's expansion across 30+ African countries, will empower SMEs to explore blockchain-powered financial solutions. By integrating with local payment systems and providing flexible, innovative funding options, these initiatives are set to become a key driver of growth and resilience for small businesses across the continent," concludes Nomvete..
