Supporting Small and Medium Enterprises in Sub-saharan Africa Through Blended Finance

This report explores how blended finance can support Small and Medium Enterprises (SMEs) in Sub-Saharan Africa, which are crucial for economic development and job creation but face significant financing gaps. It highlights that traditional financial institutions often view SMEs as high-risk borrowers. The paper examines various blended finance tools, such as concessional debt, equity, and technical assistance grants, that can help de-risk investments and attract private capital. It discusses the prevalence of SMEs in sectors like agriculture and renewable energy, and the challenges they face, including climate change impacts.