HOW SMES ARE FARING IN
According to a report by Consultancy Africa Intelligence (CAI), there has been a “noticeable increase” in the emergence of SMEs in sub-Saharan Africa. The Global Entrepreneurship Monitor on South Africa, Uganda, Angola, Ghana and Zambia showed that the number of small, established businesses is high. CAI revealed that the percentage of established owned businesses in selected African countries was the highest in Ghana (40%) and Uganda (27%) in 2010, both significantly higher than China and Brazil (under 15%). Countries that registered below 10% established business ownership, including SA and Angola, are comparable to France, the United Kingdom and the US.
For entrepreneurs, access to credit remains a key problem for SME development on the continent. The African Development Bank reported that only 20% of African SMEs had access to credit, and that only 9% of the investments SMEs make are funded by a bank (17%). By comparison, in South America and the Caribbean, 44% of SMEs reported access to credit and in Europe 23% of SMEs’ investments are financed through bank loans.