Across Africa, small and medium-sized enterprises (SMEs) are the engine of inclusive growth — responsible for more than 80% of jobs and up to 60% of GDP in some countries. Yet despite their importance, access to finance remains a persistent obstacle.
A new wave of partnerships and financial innovations is changing that narrative. In 2025, several of Africa’s largest banks and fintech players are redirecting capital toward local SMEs, recognizing their central role in building sustainable, resilient economies.
The trend reflects a growing realization that Africa’s long-term development depends not only on large infrastructure projects but also on empowering entrepreneurs at the grassroots level. The Africa SME investment 2025 momentum is now reshaping how financial institutions approach risk, lending, and technology inclusion.
Moniepoint and Visa Champion SME Digitization
In a recent announcement, Moniepoint — one of Africa’s leading digital payment companies — unveiled new initiatives designed to help small businesses scale faster and operate more efficiently. Backed by Visa, Moniepoint aims to integrate seamless payment processing, working capital solutions, and business software into one accessible platform.
“We will enable even the smallest businesses to thrive through innovative payment and software solutions that allow SMEs to scale and open new revenue opportunities,” said Andrew Torre, Visa’s Regional President for Central and Eastern Europe, the Middle East, and Africa.
This collaboration underscores how digital innovation is becoming a critical enabler of SME growth, bridging infrastructure gaps in finance, logistics, and data management. As mobile connectivity deepens, fintech solutions like Moniepoint’s are expanding formal financial access to millions of micro-entrepreneurs.
By focusing on digital transformation rather than traditional banking, Moniepoint and Visa are redefining what inclusive finance looks like for Africa’s next generation of business owners.
Standard Bank and AfDB Mobilize Capital for Local Markets
Meanwhile, Standard Bank Group, Africa’s largest lender by assets, has signed a partnership agreement with the African Development Bank (AfDB) to expand funding for small, medium, and micro enterprises (SMMEs) across sub-Saharan Africa.
Operating in over 20 African countries, Standard Bank’s collaboration with AfDB will channel new lines of credit into priority sectors — including agribusiness, renewable energy, manufacturing, and digital trade.
The initiative forms part of AfDB’s broader Private Sector Development Strategy, which aims to increase access to long-term finance for African enterprises that often lack collateral or credit histories. By leveraging AfDB guarantees and Standard Bank’s regional reach, the partnership will de-risk SME lending and unlock new pools of affordable capital.
As part of this new phase of Africa SME investment 2025, banks are not only increasing lending capacity but also investing in capacity-building programmes — helping business owners strengthen governance, bookkeeping, and digital adoption.
The Shift From Import Dependence to Local Value Chains
One of the biggest benefits of the Africa SME investment 2025 movement is the shift toward local production and supply chain resilience.
African economies have historically relied heavily on imports for everything from food processing to finished goods. Supporting SMEs — particularly in manufacturing and agribusiness — helps countries retain more value domestically and reduce exposure to global supply disruptions.
This approach aligns with the African Continental Free Trade Area (AfCFTA), which envisions a single African market that boosts intra-continental trade and industrial cooperation. By investing in SMEs, banks like Standard Bank and digital platforms like Moniepoint are helping small producers access regional markets, digitize transactions, and participate in Africa’s broader trade transformation.
Why SME Financing Is the Backbone of Sustainable Growth
Experts agree that Africa’s growth cannot be sustainable without inclusive SME financing. Large-scale infrastructure and extractive projects generate short-term GDP spikes, but it’s SMEs that sustain communities and create lasting employment.
SMEs drive local innovation, stimulate demand for digital payments, and strengthen tax bases that support public investment. By embedding sustainability into SME finance — including green manufacturing, women-led enterprises, and digital inclusion — Africa’s banks are positioning the private sector as a long-term development partner rather than a passive participant.
Financial institutions are also recognizing the commercial opportunity. The SME credit gap in sub-Saharan Africa exceeds $300 billion, according to the International Finance Corporation (IFC). Closing even part of that gap could unlock exponential returns for both investors and communities.
Fintech Collaboration: A Bridge Between Banks and Entrepreneurs
Another driver of the Africa SME investment 2025 wave is the collaboration between traditional banks and fintech startups. Instead of competing, institutions are forming hybrid ecosystems that combine banks’ regulatory strength with startups’ agility.
For example, Visa’s partnership with Moniepoint brings digital onboarding and real-time transaction data to traditional financial systems, allowing lenders to better assess SME creditworthiness. This kind of data-driven finance is helping overcome decades-old barriers to small-business lending.
It also expands financial inclusion for women and youth, who make up the majority of Africa’s informal economy but remain underserved by legacy banking systems.
A Regional Vision for Inclusive Prosperity
The renewed focus on SMEs reflects a continental consensus: to achieve sustainable economic development, Africa must prioritize small business growth. Initiatives like Moniepoint’s digital platform and Standard Bank’s partnership with AfDB represent complementary pieces of a larger puzzle — one where financial innovation meets inclusive policy.
The Africa SME investment 2025 strategy aligns with multiple global and regional frameworks, including the United Nations Sustainable Development Goals (SDGs), Agenda 2063, and AfCFTA. Together, they define a roadmap where empowering local entrepreneurs leads directly to shared prosperity.
As Africa’s banks, fintech firms, and development financiers converge around this agenda, the continent’s SMEs are poised to become not just participants — but leaders of the new African economy.
