Reshaping SME financing

» New innovative solutions promise to address barriers.

- Altesh Baijoo

mall and medium enterprises (SMEs) have historically remained under-supported in terms of access to funding. This is as a result of the inability of traditional banks to adequately service their debt capital needs — with less than 15% of SMEs gaining access to debt funding, excluding overdraft facilities.

Additionally, alternative lenders have not been able to fully meet the significant lending demands of SMEs, a funding gap which is estimated by the International Finance Corporation to be $30 billion (about R550 billion).

Fortunately, the landscape of SME financing is undergoing a transformation in 2025. Technological advancements, changing economic conditions, and the unique challenges and opportunities facing SMEs are reshaping how businesses access capital.