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The African Development Bank (AfDB) said that financial markets in Africa need to increase their lending to Micro, Small and Medium enterprises (MSMEs) in the continent by at least $135 billion in order to meet their demand.
In a statement to mark the United Nations’ (UN) MSMEs Day, AfDB noted that MSMEs in Africa need increased affordable loans and more diverse and innovative financing instruments to enable them grow.
According to the UN, MSMEs represent around 90 percent of global economic activity, and are on the front line of embracing transformative technologies and new business models. In the statement, AfDB noted that firms with fewer than 20 employees and less than five years’ experience provide the most jobs in Africa’s formal sector.
The bank said it supported 156,000 owners and operators of MSMEs in Africa in 2016 by providing them with financial services to start and grow their businesses.
