A financial crisis is any of a broad variety of situations in which some financial assets suddenly lose a large part of their nominal value. In the 19th and early. Current access to electricity remains woefully low and is a major impediment to economic growth. More than half of Africas population isnt connected to the energy grid and has no access to reliable power. A new project combining skills across the World Bank Group and IFC is taking advantage of disruptive advances in the energy and finance sectors to address these longstanding challenges for SMEs. Recent World Bank investment climate surveys find that the top two constraints for small and medium enterprises (SMEs) in Africa are access to finance and access to energy. Given that SMEs contribute disproportionately to boosting job creation, GDP, and exports, addressing these two constraints is critical to promoting economic development on the continent. Whereas both energy and finance are traditionally provided by large-scale, centralized service providersstate-owned electricity utilities and large commercial banks, respectivelynew solutions have effectively decentralized and democratized the provision of these services.
New digital-based financing mechanisms, such as crowdfunding, cryptocurrencies, peer-to-peer lending, psychometric testing, big data, and blockchain have emerged as tools for under-served finance markets. There are strong parallels in these advances for both sectors.