G20 Global Partnership for Financial Inclusion - Action Plan for Micro, Small, and Medium Enterprise Financing

Join us on June 30th, 2025, at 8:00 AM EST for an insightful discussion of country initiatives in alignment with the G20 Global Partnership for Financial Inclusion (GPFI) Action Plan for Micro, Small, and Medium Enterprise Financing, recently released.

The Action Plan

The G20 GPFI Action Plan for MSME Financing is a call to action for G20 and non-G20 countries to intensify their efforts to close the MSME financing gap given the potential impact on productivity, job creation and achieving the sustainable development goals. The credit gap alone for formal MSMEs has been estimated at 19% GDP as of 2019, for emerging markets and developing economies.  Countries worldwide can use this Action Plan voluntarily as a framework for policy prioritization, design, and implementation.

The Action Plan calls for policymakers to prioritize improvements in the enabling environment for MSME financing, as these actions carry limited fiscal costs but could bring sizable benefits. Policymakers should build the core enabling environment that can support the expansion of debt financing, including alternative lenders, as well as equity financing, and the use of financial technology, while mitigating additional risks. In addition, the Action Plan calls for policymakers to improve the effectiveness of the targeted financial interventions they deploy to support MSME financing, by adopting an evidence-driven approach for their design and implementation and embedding private capital mobilization as a key objective.

In both cases, the Action Plan proposes a common set of voluntary policy actions that governments in developed and developing countries can use to identify key areas for reform, while mindful of their own country context. The Plan highlights where a differentiated approach might be needed considering the level of development of the countries, or the size of the firms.

Why attend

• Learn how countries are implementing reforms in developed and developing countries to support the enabling environment for MSME finance
• Gain insights on differentiated country approaches to targeted support and lessons learned from these experiences

This G20 GPFI Action Plan was prepared under the G20 Brazil Presidency by the following Implementing Partners: World Bank Group, here comprising International Finance Corporation (IFC) and World Bank; with contribution from the Organization for Economic Cooperation and Development (OECD) and the SME Finance Forum (SMEFF), managed by IFC. The action plan development benefitted from the financial support of the Swiss State Secretariat for Economic Affairs (SECO).