Less than 20% of African SMEs access formal finance

The Managing Director and Chief Executive Officer of Fidelity Bank Plc, Dr. Nneka Onyeali-Ikpe, says fewer than 20 per cent of Small and Medium Enterprises (SMEs) in Africa have access to formal financing, resulting in an estimated financing gap of US$331 billion.

She disclosed on Wednesday, February 4, 2026, at the Africa Prosperity Dialogue (APD) 2026, currently underway in Accra. The three-day forum, which ends on Friday, February 6, is being held under the theme “Empowering SMEs, Women and Youth in Africa’s Single Market: Innovate. Collaborate. Trade.”

The dialogue brings together policymakers, business leaders, financiers, and development partners to shape actionable policies, unlock bankable projects, and advance inclusive prosperity within the framework of the African Continental Free Trade Area (AfCFTA).

Addressing participants, Dr. Onyeali-Ikpe stressed the urgent need for targeted interventions to support SMEs, women-led businesses, and youth-driven enterprises across the continent.

“Despite the fact that less than 20% of all African SMEs have access to formal finance, leaving a staggering US$331 billion financing gap,” she said.

Citing the International Finance Corporation’s MSME Finance Gap Report 2025, she noted that although Africa has the highest rate of female-owned enterprises globally, accounting for about 26 per cent of businesses, these enterprises continue to face severe financing and trade barriers.

Dr. Onyeali-Ikpe expressed concern about the persistent challenges confronting female-led businesses, describing the situation as contradictory to available data.

“Data shows that out of 10 companies that have bad debt, only one is female-led. So that’s why it’s quite surprising that we keep talking about this,” she said, calling for a shift from dialogue to concrete action.

She outlined three priority areas for addressing the challenges: unlocking women-led trade, converting Africa’s youth potential into enterprise, and making SMEs trade-ready. According to her, trade finance must be tailored to women-owned SMEs and supported by simplified border procedures to help informal businesses scale.

“UN research shows that women reinvest up to 90% of their incomes. Similarly, the AfCFTA identifies over US$15 billion in untapped trade potential from women-led enterprises,” she stated.

On youth participation, Dr. Onyeali-Ikpe noted that Africa’s demographic advantage must be deliberately harnessed.

“By 2035, Africa will add more young people to the workforce each year than the rest of the world put together. Youth-led businesses need skills aligning with tradable sectors and digital access to regional markets,” she said.

She also highlighted Fidelity Bank’s SME-focused initiatives, including the Fidelity Nigeria International Trade and Creative Connect programme, which has enabled Nigerian SMEs to expand into the United Kingdom and the United States markets.

“Through this effort, we have several of our SMEs that now have their products in the big shops in the United States and the United Kingdom,” she said.

On women entrepreneurship, Dr. Onyeali-Ikpe pointed to the bank’s High Fidelity platform, which supports women across financial access, entrepreneurship development, health and wellness, and business education. The initiative includes a dedicated lending fund offering significantly discounted interest rates.

She added that the Fidelity SME Hub has provided advisory services, capacity building, and tailored funding support to more than 50,000 SMEs, helping them move from survival-level operations to scalable enterprises.

Dr. Onyeali-Ikpe underscored the need for deliberate policy direction and accountable collaboration to fully unlock Africa’s economic potential.

“APD 2026 matters because Africa’s single market will not build itself. It will build through deliberate policies, targeted capital, and accountable collaboration. Empowering SMEs, women, and youth speaks to sound economic strategy, and for this, we look forward to translating these discussions into bankable outcomes for Africa’s economy,” she said.

By: Bawa Musah

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