Alternative financing can help bridge Africa’s credit gap, expert says

The Founder and Chief Executive Officer of Pawn NG, Eziefula Ezichi, has called for more flexible financing options across Africa, arguing that alternative asset-backed lending can help bridge the widening credit gap facing entrepreneurs and high-net-worth individuals.

Ezichi made the call as the alternative finance company announced plans to expand its operations across West Africa amid tightening lending conditions in the conventional banking sector.

Founded nearly a decade ago, Pawn NG provides loans backed by high-value physical assets, particularly luxury watches and fine jewellery, enabling clients to access immediate liquidity without permanently giving up ownership of their valuables.

According to him, many business owners face delays and stricter lending conditions when seeking loans from conventional financial institutions, making alternative funding options increasingly relevant.

“We are witnessing a fundamental change in how assets are viewed,” Ezichi said.

“High-value physical possessions are no longer seen merely as static stores of wealth, but as dynamic financial instruments capable of generating liquidity on demand.”

Ezichi noted that valuable assets such as luxury watches and jewellery can serve as collateral for short-term financing, allowing owners to raise funds without permanently disposing of their possessions.

He also stressed the importance of transparent valuation systems in building confidence in asset-backed financing and expanding access to credit for individuals who may not have traditional collateral such as real estate.

According to him, broadening financing options could improve financial inclusion by enabling more entrepreneurs to access working capital when needed.