Finance mobilisation for African SMEs

In a continent where small and medium-sized enterprises power over 80 per cent of jobs and drive innovation across sectors, access to finance remains a critical hurdle. CNBC Africa's Tabitha Muthoni spoke to Dogad Dogoui, Chairman of the Africa SMB Forum, about the urgent need to strengthen support systems for African SMEs. Dogoui emphasized the importance of support for African SMEs, highlighting the need for guarantees from states to access public contracts and local investors. To address this, he proposed the creation of a guarantee fund to enable banks to provide loans to SMEs, partnering with institutions such as the Bank of Africa and the African Guarantee Fund. Beyond traditional banking systems, innovative financing mechanisms such as crowdfunding and Islamic finance are being explored to provide long-term capital support for SMEs. Developing partnerships with institutions from the Gulf and Mediterranean regions could further enhance access to funding for African SMEs. Enhancing policy and regulatory frameworks is crucial to facilitate large-scale SME financing, with a focus on creating platforms for SMEs to access contracts and attract investors. By strengthening intra-African cooperation and building confidence in local business ecosystems, African SMEs can unlock opportunities for growth and sustainable development.