This article has been supplied and will be available for a limited time only on this website. By: Emma Parker - Sustainable & Impact Finance Manager
Access to finance remains one of the most significant barriers facing South Africa's small and medium-sized enterprises (SMEs). While many entrepreneurs need additional capital to grow, securing funding can be challenging, particularly for businesses operating outside major economic centres.
According to Fin find’s SA MSME Access to Finance Report, SMEs face an estimated R350 billion funding gap, driven by factors such as limited collateral, insufficient business credit data, burdensome funding requirements, and low levels of funding readiness. The report also highlights a mismatch between the types of funding businesses need and the products available to them. As a result, many SMEs may be tempted to pursue any available funding option rather than the most suitable one, increasing the risk of taking on finance that does not align with their business needs and growth plans.
The Impact Finance Network (IFN), an Anglo American programme, helps small and medium-sized businesses in Africa and Latin America become investment-ready and connect with the funding they need to grow. By supporting businesses to understand their financing options and prepare for investment, the IFN aims to improve access to capital and strengthen long-term business sustainability. Through its model, the network helps businesses overcome investment barriers, scale their operations, and increase their social and environmental impact.
