Articles

Articles

Looking for African solutions to the SME financing gap

Looking for African solutions to the SME financing gap

Unrealised growth potential and positive demographics continue to make Africa an attractive long-term investment destination, despite the SME funding gap. Africa has 400 companies with more than $1bn in revenue and 700 companies with more than $500m in revenue. Over the past five years, debt transactions totalling $110.2bn have been placed in African debt markets or by African companies on international markets, the majority of which were US dollar-denominated. Taking all of this into account, the size of the corporate loan market across sub-Saharan Africa (excluding South Africa), is estimated to be greater than $150bn. While at face value these nominal sums may seem impressive, they mask a massive shortage of finance.
 

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