How SME financial access in Africa compares to other developing economies
Friday, December 13, 2013
Africa is the world’s second fastest growing region after Asia, and has seen increasing interest from foreign and African investors. However, access to finance is – in general – still a major limitation for many African small and medium enterprises (SMEs).
A recent report by the African Development Bank (AfDB) titled Financial Inclusion in Africa highlights some statistics surrounding SME access to finance across the continent. One of the points raised is that African SMEs are generally more dependent on internal funds for financing than in other developing regions.
Using data from organisations such as the World Bank Enterprise Surveys, the report showed that the average percentage of enterprises (of all firm sizes) in sub-Saharan Africa with a bank account is on par with the average of the rest of the developing world.
“For instance, 83% of small-sized enterprises and 94% of medium-sized enterprises in Africa report having a bank account as compared to 87% of small-sized and 93% of medium-sized enterprises in other developing economies,” stated the AfDB’s research.