We value your privacy

We use cookies to enhance your browsing experience, serve personalized ads or content, and analyze our traffic. By clicking "Accept All", you consent to our use of cookies. Cookie Policy

Customize Consent Preferences

We use cookies to help you navigate efficiently and perform certain functions. You will find detailed information about all cookies under each consent category below.

The cookies that are categorized as "Necessary" are stored on your browser as they are essential for enabling the basic functionalities of the site. ... 

Always Active

Necessary cookies are required to enable the basic features of this site, such as providing secure log-in or adjusting your consent preferences. These cookies do not store any personally identifiable data.

No cookies to display.

Functional cookies help perform certain functionalities like sharing the content of the website on social media platforms, collecting feedback, and other third-party features.

No cookies to display.

Analytical cookies are used to understand how visitors interact with the website. These cookies help provide information on metrics such as the number of visitors, bounce rate, traffic source, etc.

No cookies to display.

Performance cookies are used to understand and analyze the key performance indexes of the website which helps in delivering a better user experience for the visitors.

No cookies to display.

Advertisement cookies are used to provide visitors with customized advertisements based on the pages you visited previously and to analyze the effectiveness of the ad campaigns.

No cookies to display.

ADVERTISEMENT
Africanian
  • News
  • News 24/7
  • Politics
  • Business
  • Health
  • Sports
  • Travel
  • World
    • US
    • Russia
    • Europe
    • Asia
    • America
  • Events
No Result
View All Result
Africanian
No Result
View All Result
Home Business

$5.5 billion Committed to MSME financing in Africa

Coalition exceeds its $4 billion target by 40% in an effort to help MSMEs face the Covid-19 pandemic

in Business, News, World
Reading Time: 3 mins read
0 0
0
Dollar bills
34
SHARES
Share on FacebookShare on TwitterShare via Whatsapp

The coalition for a sustainable and inclusive recovery of the private sector(link is external), an international group of 20 development finance institutions that came together in 2020, today announced commitments of over $5.55 billion of financing to micro, small and medium enterprises (MSMEs) in Africa between mid-2020 and end of 2021, beating their set target of $4 billion over the period.

READ MORE: African Development Bank Group President Calls for SDR reallocation and vaccine equality at EU-AU summit

The coalition said it had exceeded its initial target by 40 percent, while development finance institutions jointly committed over $5.55 billion of financing of micro, small and medium enterprises in Africa over the period.

At the first Finance in Common Summit in November 2020, the EDFI Association, on behalf of its 15 European member development finance institutions, together with the African Development Bank, the West African Development Bank (BOAD), FinDev Canada, the U.S. International Development Finance Corporation, and the Islamic Corporation for the Development of the Private Sector, launched the coalition. The Trade and Development Bank joined it soon after.

Global development fund

More

Kenya drives digital inclusion with a program to benefit over 50,000 people in three years

Kenya turns resources into results: the economy grows and strengthens

Mozambique leads ambitious reconstruction in Cabo Delgado with youth-centered and sustainable approach

READ MORE: EQUATORIAL GUINEA: Director General of Conexxia Visits Dreams Hub

In response to the unprecedented global health and economic crisis caused by Covid-19, the coalition recognised the critical role development finance institutions play in supporting the crisis response in vulnerable countries.

While micro, small and medium enterprises are the economic lifeblood of emerging and frontier economies, they are also more vulnerable to crises than larger enterprises. In developing countries, formal small and medium enterprises contribute more than one third of gross domestic product and account for 52% of formal employment.

Improved access to finance for micro, small and medium enterprises is critically important to boost growth and the prospects of the 450 million young Africans projected to join the labour market by 2050. The Covid-19 crisis put the viability of micro, small and medium enterprises under acute pressure and efforts to expand inclusive financial solutions are crucial for a successful recovery.

READ MORE: 7th EU-Africa Business Forum 2022

To address this challenge, the coalition’s signatories committed to: deepen cooperation among their institutions; focus on inclusive financial solutions for the private sector; and support clients with technical assistance and advisory services when needed. Consequently, the 1,400 projects contracted demonstrate a strong focus on smaller and inclusive projects as well as on a broad spectrum of small and medium enterprises, from small enterprises/start-ups to mid-sized firms with strong growth potential. In addition, signatories mobilised €23 million of technical assistance, including capacity building and advisory services to MSMEs.

African Development Bank President Akinwumi Adesina said: “Micro, small, and medium-sized enterprises are vital to Africa’s prosperity, representing 90% of all businesses and generating more than half of all jobs. Many small entrepreneurs will tell you that limited access to finance is a major hurdle to growth. The $5.5 billion that we are committing together will go a long way in overcoming this hurdle. I am confident our initiative will make a major contribution to the success of micro, small, and medium-sized enterprises all over Africa. If they grow, we all do.”

 

The 20 development finance institutions signatories to the coalition are focused on investing in vulnerable countries where Covid-19 has jeopardised decades of achievements with regard to private sector development, job creation and poverty reduction The signatories hold collectively a portfolio of nearly USD 90 billion committed to private sector operations in low and middle-income countries, supporting more than 12 million direct jobs, with over 40% of this in Africa.

 

Source: AFDB

africanian.news

africanian.news

  • Trending
  • Comments
  • Latest
Jump Shot: The NBPA x UM6P Innovation Challenge – A Game-Changer for African Entrepreneurs

Jump Shot: The NBPA x UM6P Innovation Challenge – A Game-Changer for African Entrepreneurs

March 24, 2025
Kenya turns resources into results: the economy grows and strengthens

Kenya turns resources into results: the economy grows and strengthens

July 17, 2025
Weather in Kenya: Climate, Seasons, and Average Temperature

Weather in Kenya: Climate, Seasons and Average Temperature

August 26, 2020
Kenya drives digital inclusion with a program to benefit over 50,000 people in three years

Kenya drives digital inclusion with a program to benefit over 50,000 people in three years

July 18, 2025
Kenya turns resources into results: the economy grows and strengthens

Kenya turns resources into results: the economy grows and strengthens

July 17, 2025
Mozambique leads ambitious reconstruction in Cabo Delgado with youth-centered and sustainable approach

Mozambique leads ambitious reconstruction in Cabo Delgado with youth-centered and sustainable approach

July 17, 2025
Twitter Instagram Youtube Facebook
No Result
View All Result

Africanian News

Is a dedicated project aimed at amplifying the voices of the African Ecosystem and Diaspora. We actively collaborate with initiatives to improve access to education and digital inclusion, both in traditional schools and through digital platforms, for African children.

It’s crucial to emphasize that none of the articles or images featured on our platform are intended for copyright infringement, neither now nor in the future. If you believe that any information, text, image, etc., may be subject to copyright and should be removed, please notify us by sending an email to info@africanian.com

Your dreams matter; your stories matter.

Feel free to explore collaboration opportunities with us. Share your articles, thoughts, interviews, experiments, or no-comment videos by reaching out to info@africanian.com. You can also subscribe to our mailing list to receive the latest updates from Africanian News.

© 2024 Africanian News: From Africa, by Africans, for Africa, and friends of Africa.

No Result
View All Result
  • News
  • Politics
  • Business
  • Health
  • Sports
  • Entertainment
  • Tech
  • Travel
  • World

© 2024 Africanian News: From Africa, by Africans, for Africa, and friends of Africa.

Welcome Back!

Login to your account below

Forgotten Password? Sign Up

Create New Account!

Fill the forms below to register

All fields are required. Log In

Retrieve your password

Please enter your username or email address to reset your password.

Log In

Log In

Sign In

Forgot password?

Don't have an account? Register

Forgot password?

Enter your account data and we will send you a link to reset your password.

Back to Login

Your password reset link appears to be invalid or expired.

Log in

Privacy Policy

Accept

Add to Collection

  • Public collection title

  • Private collection title

No Collections

Here you'll find all collections you've created before.