Leading sources of funding among MSMEs in Africa 2023

Between 2022 and 2023, a survey conducted in selected African countries found that the majority of micro, small, and medium enterprises (MSMEs), 41 percent, relied exclusively on the funds of their founders. Moreover, 29 percent of the firms received financing from family and friends, 11 percent from bank loans, and seven percent through government funds.

When examining specific countries, the source underlined that Ethiopia had a more communal approach to financing, with 62 percent of businesses reporting being funded by family and friends. Bank loans were not a common source of funding for businesses in general. In Kenya, however, a higher percentage of 27 percent of businesses had received bank loans at some point during their operations.