Kigali, Rwanda, November 13, 2017
—IFC, a member of the World Bank Group, is partnering with public and private sector actors to support the development of small and medium sized enterprises to address the employment crisis and promote entrepreneurship across Africa.
IFC engaged with entrepreneurs at the SME and Banking Africa Forum in Kigali, Rwanda to facilitate opportunities for the public sector and financial institutions to unlock the potential of African small and medium enterprises. IFC is working to create an enabling environment and build the capacity of entrepreneurs to make them more globally competitive. IFC also collaborates with financial institutions to develop innovative financing tools that meet the needs of a wide range of entrepreneurs.
Access to finance and financial inclusion play a critical role in enabling SMEs contribution to development. SMEs positively impact growth, equitable income distribution and poverty reduction in developing economies. However, in Africa, SMEs face a financing gap of over $136 billion annually. Accessible and inclusive financial products and services will help SMEs realize their potential. To address this challenge IFC has developed a suite of innovative tools aimed at promoting financial inclusion and fostering access to finance.
“Small and medium enterprises account for 90 percent of all business in Africa, driving growth and development in the region,” said Oumar Seydi, IFC Director for Africa Region. “IFC is supporting innovative approaches to improving financial inclusion for SMEs such as digital financial services, through which an IFC program has helped more than seven million people open digital bank accounts.”
“The forum offers a unique ecosystem for SMEs as it facilitates access to funding, expertise and to new business opportunities across the continent. This year, there is a special focus on Innovation in SMEs to boost their growth and improve their competitiveness” states Didier Acouetey, founder of AfricSearch and the SME & Banking Africa Forum.
Experts estimate that 122 million new workers will be added to Africa’s labor force by 2020, which will increase to over 500 million people. Small and medium enterprises are generating most employment opportunities for these new entrants to the workforce. IFC plays a critical role in helping the private sector to create the jobs which deliver solutions to Africa’s jobs crisis.
About IFC
IFC, a member of the World Bank Group, is the largest global development institution focused on the private sector in emerging markets. Working with more than 2,000 businesses worldwide, we use our capital, expertise, and influence to create markets and opportunities in the toughest areas of the world. In FY17, we delivered a record $19.3 billion in long-term financing for developing countries, leveraging the power of the private sector to help end poverty and boost shared prosperity. For more information, visit
www.ifc.org
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