Small automobile dealerships litter the roads from Berger to Ajah in the city of Lagos and other major cities in Nigeria and Africa. Compared to its population of over a billion, the continent has a rather poor automotive industry. “The motorization rate on the continent is only 44 vehicles per 1,000 inhabitants. This is far below the global average of 180 vehicles per 1,000 inhabitants”. A huge number of the cars on the market are resold second-hand automobiles, sold by unstructured car dealers without a fleet of cars or even a car lot. Think of how many times you’ve seen a WhatsApp or Facebook ad selling a used car. These automobile dealers are small independent dealers and small businesses make up a large percentage of businesses worldwide, with sub-Saharan Africa alone having 44 million micro, small and medium enterprises These numbers mean that a large portion of the African economy is held up by small businesses and for these businesses to thrive, they need financing.
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