Beyond Microfinance: Financing Small and Medium Enterprises to Accelerate Development in Sub-Saharan Africa
(2012) African Finance Journal Conference — Location: Nairobi, Kenya
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- Abstract
- A strong and effective small and medium enterprise (SME) sector is central to job creation, income, investment, innovation, and economic growth in Sub-Sahara African countries. However, the SME sector is plagued with enormous challenges, including access to finance. Indeed, financial institutions, particularly commercial banks, cater only to rich clientele and are not accessible to SMEs. Microfinance institutions (MFIs) have experienced rapid growth in the past decades, and a number of MFIs have tried to bridge the financial resource gap by providing SMEs with credit. Because of their limited financial capabilities, however, they have not been able to adequately cover SMEs’ needs. In this context, it is important to explore alternative mechanisms that can help meet small and medium entrepreneurs’ financial requirements. The paper explores these alternative financial mechanisms for the development of SMEs, particularly “mesofinance”. It argues that “mesofinance” can help scaling up financial support to SMEs.
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Nsabimana, A., & et al. (2012). Beyond Microfinance: Financing Small and Medium Enterprises to Accelerate Development in Sub-Saharan Africa. African Finance Journal Conference, Nairobi, Kenya. https://hdl.handle.net/2078.5/90251