Access to finance remains a major challenge for Africa, particularly for small and medium-sized enterprises (SMEs), which form the backbone of the continent’s economy. Experts emphasize that local resource processing, regional value chains, and the successful implementation of the African Continental Free Trade Area (AfCFTA) will require significantly greater financial support for businesses.
Amid global economic uncertainty and increasingly scarce capital, Africa is exploring new pathways to sustainable growth. SMEs play a critical role in this effort, contributing an estimated 40% of the continent’s GDP, providing between 60% and 80% of jobs, and representing nearly 90% of Africa’s economic fabric. Experts argue that the transformation of natural resources, the development of regional value chains, and the ambitions of the AfCFTA cannot be achieved without stronger financial mobilization for businesses.
“One important figure to remember is that Africa’s SME financing gap is estimated at approximately USD 330 billion. This is a considerable amount. When you have a financing gap of that magnitude, while at the same time small businesses are trying to trade and expand their commercial activities, we must do everything possible to facilitate their ability to conduct business more effectively.”
Didier Acouetey, Special Advisor to the President of the African Development Bank – Togo
The African Development Bank estimates that African SMEs face a financing shortfall worth several hundred billion dollars, limiting their competitiveness and expansion opportunities. Foreign exchange constraints, high trade costs, and insufficient collateral requirements continue to weigh heavily on their growth.To address these challenges, financial institutions are expanding guarantee schemes, credit lines, and innovative financing instruments aimed at securing transactions and improving SMEs’ access to the capital needed for development.
“We also face significant challenges regarding transfer regulations and foreign exchange controls. Banks must work extensively on these regulations because, in some regions, they have become obstacles to trade due to their restrictive nature. The conditions governing money transfers considerably reduce transactions and, in some cases, even encourage the emergence of informal or black markets.”
Francisca Tatchouop Belobe, African Union Commissioner for Economic Development, Tourism, Trade, Industry and Mining – Equatorial Guinea
Another key takeaway from the discussions is the central role of the private sector in Africa’s economic transformation. As the primary source of employment across the continent, the private sector is increasingly recognized as an indispensable partner in addressing the challenges of industrialization, regional integration, and wealth creation. Several financing and partnership agreements have already been concluded to support strategic projects in infrastructure, energy, agriculture, and trade.
“In 2025, to give you an idea of the scale of our commitments, we approved nearly EUR 3.2 billion in financing. Around 30 percent of that amount was directed toward Africa, and more than 50 percent was allocated to African financial institutions to support private sector development and entrepreneurship. We also committed nearly EUR 400 million through Choose Africa, our initiative dedicated to supporting African SMEs and large companies.”
Mehdi Tanani, Regional Director for Central Africa, Proparco – Morocco
Beyond these announcements, a clear message has emerged: if Africa is to turn economic integration into a tangible reality, it must build stronger, more inclusive financial systems that are better aligned with the needs of businesses. The continent’s long-term transformation and the improvement of living standards will depend largely on the ability of African enterprises to invest, produce, innovate, and trade across borders.
