Olugbenga Agboola: Why African Businesses Lack Growth and Expansion

Increasing access to credit in Africa begins with unlocking the economy’s full potential, according to Olugbenga Agboola, the CEO and founder of Flutterwave.

Africa represents a huge potential with its highly growing consumer demands. However, one of the significant issues the African market experiences is that the consumer credit systems need to be well-developed and organized to enable businesses and entrepreneurs to access debt easily.

According to Olugbenga Agboola, a market lacking debt lacks speed in everything. He says entrepreneurs and businesses will need more motivation to make payments quickly. This affects innovation due to ineffective cash flow within the economy.

United States citizens begin growing their credit history early in life, thus, enabling them to build trust with lenders who give them access to loans with good interest rates. This money helps them set up businesses, cover expenses, and make large purchases.

But this is not the case with many parts of Africa that do not have credit histories. This limits consumers from showing lenders that they can take and pay loans on time, thus, affecting the development and growth of the African market. Due to limited finances, African investors have limited options to start and expand their businesses.

Know more about Olugbenga Agboola on techcabal.com

Flutterwaves’ main goal is to avail credit data to people within the African market.

While the lack of data makes smart lending challenging, Olugbenga states that they focus on changing current events. For instance, they focus on enabling merchants to share their data with the bank or lenders. These lenders can use the data to decide about credit, allowing merchants to secure finances and boost their businesses.

According to Agboola, many African businesses sell products and services by the roadside. If these traders have access to credit quickly, they can use the money to re-stock and offer better services to customers.

It can be life-changing for such entrepreneurs when they secure credit to improve their businesses. Agboola says that such businesses can afford inventory costs and offer consumers affordable services while generating profits. However, this is possible when there is adequate data and enhanced infrastructure.

Modern credit bureaus offer data-driven credit scoring systems that enable lenders to manage business lending risks. Lenders can use the data to examine the applicant’s credit history, payment history, and other related elements.


Agboola says they can build an efficient credit system without many complications, as experienced in other areas. There need to be credit bureaus built from the ground up to make this successful in some African countries. Other African nations should expand their current systems to accommodate the needs of small businesses and individuals.

In Nigeria, many people still use cash as a form of payment for products and services, and many do not have bank accounts.

Since many people have credit cards in Nigeria, Agboola says they focus on increasing credit use which is possible with effective data access.

Moving from a cash payment system to a credit card system shouldn’t be a challenge. Flutteware, based in Nigeria, enables businesses to make and receive payments and send money to loved ones. Consumers can also leverage this opportunity to start businesses and get more sophisticated with using credit.

Visit: https://guardian.ng/tag/olugbenga-agboola/

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