News
IFC Moves to Unlock Potential of African SMEs
IFC, a member of the World Bank Group, is partnering with public and private sector actors to support the development of small and medium sized enterprises to address the employment crisis and promote entrepreneurship across Africa.
IFC engaged with entrepreneurs at the SME and Banking Africa Forum in Kigali, Rwanda to facilitate opportunities for the public sector and financial institutions to unlock the potential of African small and medium enterprises.
IFC is working to create an enabling environment and build the capacity of entrepreneurs to make them more globally competitive. IFC also collaborates with financial institutions to develop innovative financing tools that meet the needs of a wide range of entrepreneurs.
Access to finance and financial inclusion play a critical role in enabling SMEs contribution to development. SMEs positively impact growth, equitable income distribution and poverty reduction in developing economies.
However, in Africa, SMEs face a financing gap of over $136 billion annually. Accessible and inclusive financial products and services will help SMEs realize their potential.
To address this challenge IFC has developed a suite of innovative tools aimed at promoting financial inclusion and fostering access to finance.
“Small and medium enterprises account for 90 percent of all business in Africa, driving growth and development in the region. IFC is supporting innovative approaches to improving financial inclusion for SMEs such as digital financial services, through which an IFC program has helped more than seven million people open digital bank accounts,” said Oumar Seydi, IFC Director for Africa Region.
“The forum offers a unique ecosystem for SMEs as it facilitates access to funding, expertise and to new business opportunities across the continent. This year, there is a special focus on Innovation in SMEs to boost their growth and improve their competitiveness” states Didier Acouetey, founder of AfricSearch and the SME & Banking Africa Forum.
Experts estimate that 122 million new workers will be added to Africa’s labor force by 2020, which will increase to over 500 million people.
Small and medium enterprises are generating most employment opportunities for these new entrants to the workforce.
IFC plays a critical role in helping the private sector to create the jobs which deliver solutions to Africa’s jobs crisis.
EFCC
The African Development Bank Group last week approved an investment of €6.5 million in the Saviu II fund in order to support technology start-ups through their seed phase and first institutional fundraising, mainly in French-speaking Central and West Africa.
The Bank will invest €4.5 million as equity and €2 million as a first-loss hedging tranche on behalf of the European Commission, under the Boost Africa Programme.
This participation of the Bank Group will enable the Saviu II fund to give priority to companies with a strong technological or digital component.
Saviu II, the second investment vehicle of Saviu Partners, plans to invest between €500,000 and €3 million in about 20 technology or technology-oriented business-to-business start-ups in the seed phase or carrying out first institutional fundraising.
The Saviu II venture capital fund aims to make at least 60% of its commitments in the French-speaking countries of West and Central Africa: Côte d ‘Ivoire, Cameroon, Benin, Senegal, Togo, Burkina Faso and Mali.
The fund can also co-invest in promising technology companies in East Africa that have a strong team and business model, and whose strategy includes entering the market in French-speaking West African countries and establishing a strong presence there.
In addition, the fund will devote a dedicated envelope to pre-seed investments, focusing on minority equity investments, usually in co-investment with studios, incubators or other ecosystem partners.
Nigerian Government has signed a $1.3 billion Memorandum of Understanding (MoU) with Africa Finance Corporation (AFC) via the Solid Minerals Development Fund (SMDF) to fund an alumina refinery, national geoscience mapping, and a strategic investment vehicle for mining growth.
Special Assistant to the Minister of Solid Minerals Development, Segun Tomori, said the refinery will process one million tonnes of bauxite yearly using a modern Bayer process, powered by an on-site gas-fired cogeneration plant.
Minister Dele Alake called it a transformative milestone boosting GDP, aligning with reforms that improve investment climate, regulations, and licensing to attract private capital. He directed agencies to fast-track permits.
The 20-year project at 95% utilization eyes 19 million tonnes total output, $1.2 billion annual GDP addition, $25 billion economic impact, and $8 billion forex earnings, per feasibility studies.
SMDF Executive Secretary Fatima Shinkafi termed it the agency’s biggest funding deal, supporting value-addition policy.
The partnership extends to geoscience mapping for mineral data, de-risking exploration, and a joint vehicle for mining assets.
Permanent Secretary Engr. Farouk Yabo praised the reforms. Shinkafi signed for government; AFC’s Franklin Edochie for the corporation, witnessed by AFC CEO Samaila Zubairu.
Tomori positioned it as Nigeria’s largest private mining investment and FDI magnet.
SEC Revokes Registration of Kensington Agro Trading Limited
NCDC Raises Alarm over Lassa Fever Ravaging 18 States in Nigeria
Lagos Deploys Drones, AI to Boost Traffic Response
Purple Woman 3.0 Is Back, to Empower Women in Tech this IWD 2026
NRS Targets N40trillion in Tax, Royalty Revenue in 2026
Accidental Billionaire Opts for Jail Instead of Returning Money Credited Him by Mistake
Kaspersky Brings more Transparency to Threat Detection with New Hunt Hub
Dr. Cairo Ojougboh Foundation Bolsters Nigeria’s Education Drive with ₦2.7m Student Support
NDPC Commits to Balancing Data Privacy, Protection Information
OADC Lagos Reinforces Commitment to Local Data Hosting and Digital Transformation @ NDPC’s National Privacy Week Summit
E-Financial2 days agoIran-Israel-US Conflict and CBN’s FX Gains: A Stress Test for Nigeria’s Monetary Stability
E-Financial2 days agoMutual Benefits Assurance Reaffirms Full Regulatory Compliance, Enhanced Governance
General News2 days agoJAMB Uncovers AI-Driven Fraud Targeting UTME Candidates, Warns Parents
General News2 days agoSERAP Asks FCCPC to Investigate Google, Meta, Others over Alleged Rights Abuses
News2 days agoTeamApt, Awabah Partner to Boost Pension Drive for Nigerians
News2 days agoFlashChange CEO, Bidemi Oke, Urges Startups to Build Strong Governance Structures Early
E-Financial2 days agoReps Mull Commission to Regulate Fintech Operations
General News2 days agoCapelli Institute Commits to Advancing Trichology in Nigeria