Township Spark: Unlocking Finance and Opportunities for Township MSMEs

Описание: Township Spark is an innovative blended-finance initiative by United Nations Development Programme (UNDP) in South Africa, the United Nations Capital Development Fund (UNCDF), and partners including the Development Bank of Southern Africa (DBSA) and African Bank, designed to unlock new capital flows for township-based micro, small, and medium enterprises (MSMEs).

This syndicate-style guarantee facility blends development finance de-risking capabilities to attract commercial capital to underserved township markets, with a special focus on youth- and women-led businesses. By reducing lending risk and testing alternative credit metrics, Township Spark aims to improve access to affordable finance, help formalise township enterprises, and generate critical market insights that can shape scalable solutions across South Africa and beyond.

South Africa’s township economy contributes an estimated R1 trillion annually, sustaining millions of livelihoods through small-scale trading, services, and manufacturing — yet many businesses remain disconnected from mainstream finance. Township Spark addresses this financial exclusion by enabling agile lending solutions and catalysing private capital to support inclusive economic growth.

Read the full press release here: https://www.undp.org/south-africa/pre...

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