Small and medium-sized enterprises (SMEs) are the backbone of Africa’s economy, yet access to finance remains a major challenge. Faced with an estimated financing gap of nearly 300 billion USD per year, several initiatives are emerging to support their growth. Among them is AfPAY, Afreximbank’s payment platform, which is now leveraging the Chinese renminbi to facilitate trade between Africa and its largest economic partner, China.
Small and Medium sized enterprises account for more than 90% of African businesses and contribute over 60% of jobs across the continent. However, they face an estimated annual financing gap of nearly 300 billion USD, limiting their ability to invest, innovate, and fully participate in Africa’s industrialization.
‘’ The challenge of SME financing is highly complex, but we are working to address it step by step. Today, Afreximbank is developing a number of platforms that support SMEs. The first is our Africa Trade Gateway platform, which serves as a hub integrating several platforms, including compliance platforms such as Mansa. Through these compliance platforms, we are helping SMEs improve their compliance standards by guiding them through compliance screening processes. It is also a marketplace that enables SMEs to showcase their products and connect with potential buyers. ‘’
Jean Arsène Yerima, Regional Director of Operations for Francophone West Africa, Afreximbank – Cameroon
This issue takes on even greater significance as trade between Africa and China reaches record levels. In 2024, China-Africa trade exceeded 295 billion USD, making China Africa’s largest trading partner for the sixteenth consecutive year. To support this momentum, Afreximbank is relying on AfPAY, its international trade payment system. The integration of the Chinese renminbi (RMB) now allows African businesses to settle transactions directly with China without systematically going through the US dollar. This innovation reduces foreign exchange costs, speeds up payments, and enhances the security of commercial transactions.
‘’With the AfPAY solution, Afreximbank has expanded its correspondent banking offering beyond the traditional costs associated with letters of credit to cover a broader range of correspondent banking operations through clearing services. In practical terms, an individual, institutional, or private-sector client initiates a payment request through their commercial bank, which then works with Afreximbank to process and settle the payment, with Afreximbank acting as the correspondent bank.‘’
Jean Arsène Yerima, Regional Director of Operations for Francophone West Africa, Afreximbank – Cameroon
In the long term, AfPAY and the Pan-African Payment and Settlement System (PAPSS) could help remove one of the main obstacles to SME growth: access to markets and financing. As monetary diversification accelerates and Africa-China trade continues to expand, these tools are emerging as key drivers of the continent’s financial sovereignty and important enablers of the African Continental Free Trade Area (AfCFTA).
