Understanding investment gaps for Black-owned and -led businesses in sub-Saharan Africa
Introduction
Together with British International Investment (BII), Swedfund commissioned research by Open Capital into the financing gaps and challenges faced by Black-owned and -led businesses in five African countries: Côte d’Ivoire, Kenya, Nigeria, Senegal and South Africa.
Local entrepreneurs need access to capital to grow their businesses and create jobs. Strengthening local ownership and decision making is part of Swedfund’s strategy and our commitment to reduced inequalities. Supporting entrepreneurship, local value creation and access to capital is also central to our role as a development finance institution.
The research shows that while Black-owned and -led businesses account for a significant share of the enterprise landscape in the markets studied, they continue to face disproportionately large funding gaps and barriers to accessing capital.
The BOLD report highlights the importance of local knowledge, strong relationships and financing suited to local business needs. It also points to an opportunity for investors to help connect businesses with the capital and support they need to grow and scale.