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kauffmann Tagged Articles
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Facts about SMEs in Africa
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| Very few countries have working definitions of SMEs, except some members of UEMOA/WAEMU and Mauritius and
Morocco. So data on this is hard to compare, though patterns can be seen and countries can be ranked by extent of
SME activity: |
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Expanding the supply of finance through the non-financial private sector - Increasing SME Access to Finance: A Four Pronged Approach
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| Financial institutions are not the only source of money for
SMEs. Apart from remittances by nationals working abroad,
which are a key boost to private-sector growth, the interdependence
between SMEs, large firms and sectoral
“clusters” is a major potential source of finance, as shown
in Asia and Latin America. |
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Helping SMEs meet the requirements of formal financing - Increasing SME Access to Finance: A Four Pronged Approach
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| Apart from the need to boost SME capacities, some financial
instruments can help provide missing information or reduce
the risk stemming from some SMEs’ lack of transparency. |
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Restricted Access to Finance
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| Africa’s SMEs have little access to finance, which thus
hampers their emergence and eventual growth. Their
main sources of capital are their retained earnings and
informal savings and loan associations (tontines), which
are unpredictable, not very secure and have little scope
for risk sharing because of their regional or sectoral
focus. |
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