The 2025 Finfind South African MSME Access to Finance Report provides a sobering read into funding micro, small, and medium enterprises (MSMEs).
The report was sponsored by the Department of Small Business and Development, African Bank Experian IFC – International Finance Corporation and others.
The last report was pre-COVID, way back in 2018, and the latest report covers 1st September 2023 to 31 August 2024. The data sample was 10 000 MSMEs
The report repeats what is well known: SA has high unemployment and MSMEs are critical to job creation
Unfortunately according to the report, the “MSME sector are not growing significantly”
The funding gap for MSMEs is over R 350 billion. The report states “In South Africa, the funding gap is not a shortage of supply, but rather that finance is not aligned to the demand”
The report revealed that over 70% of MSMEs earn revenue below R1 million per annum and unable to access finance.
The report suggests over a dozen changes including
1. Specific MSME funding solutions (<R1m p.a)
2. Reform the traditional risk assessment and credit scoring models
3. Use digital platforms for applications and matching
4. Leverage fintech applications
5. Relook at government credit guarantee scheme
6. Enhanced accounting services and funding readiness
It is time for public and private sector stakeholders including government, corporates, funders, banks, incubators, accountants, credit bureaus and others to work together in support MSMEs and making a contribution to the economy.
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The 2025 Finfind South African MSME Access to Finance Report provides a sobering read into funding micro, small, and medium enterprises (MSMEs). The report was sponsored by the Department of