Abstract :
[en] The dynamic evolution of the financial landscape in Sub-Saharan Africa (SSA), particularly in West and Central Africa (WCA), offers promising opportunities for innovation and economic development. Despite the growing popularity of alternative financial models worldwide, countries in this region face significant challenges in realising their full potential.
This PhD thesis, entitled “Essay on Macro-economic factors, entrepreneurship and Alternative Finance in Francophone Africa,”examines these challenges, presenting a comprehensive analysis across three distinct interconnected essays, drawing on relevant economic and financial theories, to support our conclusions and recommendations to policymakers in sub-Saharan Africa.
This thesis is structured in three chapters:
Chapter 1: Factors influencing the deployment of local platform crowdfunding in Sub Saharan Africa: Evidence from West and Central Africa countries.
The first chapter explores why African countries, particularly in WCA, struggle to exploit the potential of alternative finance models, particularly the crowdfunding and sustain local platforms. Employing a hypothetico-deductive methodology, this study utilizes logistic regression models on panel data from twenty WCA countries from 2010–2019. The research highlights how technological and communication infrastructures, particularly the internet and mobile phone penetration, significantly influence positively the deployment of national crowdfunding platforms. Conversely, deficiencies in basic infrastructure, legal frameworks, educational systems, and financial development impede the long-term sustainability of these platforms.
The essay draws on theories of technological diffusion of Rogers based on studies of Pantano and Vannucci (2019), and institutional economics of North, to explain these phenomena (Keefer & Knack, 2008). It offers actionable insights for policymakers to address these barriers and foster a more conducive environment for crowdfunding.
Chapter 2: Entrepreneurship and alternative finance models: The potential to increase access to capital for entrepreneurs and small business enterprises in West African Francophone countries.
The second chapter investigates the role of alternative finance models in enhancing access to capital for entrepreneurs and small businesses in Francophone West African countries. The findings demonstrate a positive correlation between these innovative financial models and improved entrepreneurial outcomes. Additionally, technological advancements are shown to bolster entrepreneurial success, while financial inclusion emerges as a critical factor in expanding access to capital. This essay underscores the importance of integrating alternative finance models and fostering financial inclusion to stimulate entrepreneurial growth in the region. Theoretical frameworks such as Schumpeter’s theory of innovation (Thanawala, 1994) and financial inclusion theories (Demirgüç-Kunt & Klapper, 2013) are employed to contextualise these findings.
Chapter 3: Overcoming financial barriers for SMEs and startups in the DRC: Leveraging digital financial services for an effective entrepreneurial ecosystem.
The third chapter addresses the specific context of the Democratic Republic of the Congo (DRC), examining the challenges faced by SMEs and startups in securing early-stage capital. It identifies barriers such as limited financial infrastructure, stringent lending conditions, high interest rates, political instability, and the informal economy. The study also explores the potential of digital financial services, including mobile money and crowdfunding, to bridge the funding gap. While recognising the benefits of these digital services in improving accessibility and efficiency, the essay calls for targeted policy interventions, capacity-building efforts, and robust financial infrastructure to create an enabling ecosystem for entrepreneurship and crowdfunding in the DRC. Theories related to financial deepening (McKinnon, 1973; Shaw, 1973) and the digital divide (van Dijk, 2006) are utilised to support the analysis.
These essays contribute to the ongoing debate on financial innovation and development in sub-Saharan Africa. They provide valuable insights into the factors inhibiting the growth of crowdfunding and alternative finance models, propose practical solutions to overcome these challenges, and highlight the potential for digital financial services to transform the financial landscape.
By addressing these issues, the thesis aims to inform future models and strategies to promote sustainable economic development through innovative financing mechanisms in Francophone Africa. The incorporation of established theories enhances the robustness of our arguments and underscores the broader implications of our findings for policy and practice in the region.
