South Africa’s $21.5 billion SME funding gap is really a data problem
- South Africa's MSMEs face a financing gap of R350 billion ($21.5 billion).
- The number of small business funders in South Africa has increased from 148 in 2018 to over 300 in 2025.
- 56% of South Africa's MSMEs are unregistered, and only 7% have used formal business loans.
The financing challenges faced by South African MSMEs highlight the need for innovative approaches in lending and support. While increased funding sources are promising, the focus should also be on improving data accessibility and understanding the unique needs of small businesses to foster sustainable growth.
