From the bustling streets of Zambia’s Lusaka to the entrepreneurial hubs of Lagos, Nigeria, small and medium-sized enterprises, or SMEs, fuel Africa’s economic engine. They drive innovation, create jobs, and weave economic resilience into the fabric of local communities.
Recognizing their central role in economic development, SMEs are prioritized in national policy agendas across much of the continent. Yet despite this, they continue to face persistent financing challenges. According to the World Bank enterprise survey data, the SME finance gap in just 10 sub-Saharan African countries is estimated at $21 billion, with over half of SMEs facing credit constraints.
This financing gap persists even though African banks overwhelmingly cite SMEs as a business priority, as they are constrained by structural barriers that limit their ability to lend to them. Traditional financing models are therefore falling short, leaving promising businesses stuck in the early stages of growth. As global interest in Africa’s entrepreneurial potential rises, the need for innovative financing platforms has never been clearer.