Actions for MSME Financing: Implementing the G20 Global Partnership for Financial Inclusion MSME Finance Action Plan
2024 Theme
Small and medium enterprises (SMEs) are the backbone of economies worldwide, accounting for over two-thirds of global employment and playing a critical role in job creation and economic resilience. However, persistent financing gaps limit their potential to drive inclusive growth and recovery from economic shocks.
The G20 Global Partnership for Financial Inclusion (GPFI) MSME Action Plan provides a timely framework to address these challenges, fostering resilience and innovation among SMEs while aligning with sustainable development goals (SDGs). The Global SME Finance Forum, an official side event of the G20 South African Presidency, will present GPFI’s comprehensive roadmap to address the systemic barriers hindering SMEs’ access to finance.
G20 MSME Action Plan: Financing and Policy Enablers
Resilient Value Chains: Strengthen sustainable sourcing, fair labour practices, and circular economy models to future-proof SMEs against disruptions.
Tailored Financial Solutions: Provide customised financial tools to promote the financial health and stability of micro and small enterprises.
Scaling Success Stories: Highlight examples of SMEs achieving growth through innovative financing models and sustainable business frameworks.
Digital Innovation: Powering SME Growth and Global Competitiveness
Value Chain Integration: Highlight success stories of SMEs scaling through digital integration, such as streamlined supply chains or cross-border e-commerce platforms.
Global Reach: Equip SMEs with technology to compete internationally, from cloud based accounting systems to AI-driven market analytics.
Empowering SMEs in Sustainability, Resilience and Growth
Policy Reforms: Promoting policies that facilitate working capital, trade finance, and digital payments while supporting financial technologies that simplify SME operations.
Public-Private Partnerships: Encouraging collaboration between governments, financial institutions, and private sector stakeholders to mobilize resources, mitigate risks, and scale impactful solutions
Synopsis:
The G20 GPFI Action Plan for MSME Financing addresses a persistent $5.7 trillion financing gap affecting micro, small, and medium enterprises globally—equivalent to 19% of GDP in emerging markets and developing economies. This gap significantly constrains job creation, innovation, and economic growth, making effective implementation of the Action Plan's framework critical for unlocking MSME potential worldwide.
The panel showcased how countries translated the Action Plan into practice, featuring real-world implementation experiences from developing economies. Panelists shared lessons learned from enabling environment reforms, targeted interventions, and innovative approaches to mobilize private capital for MSME financing. Discussions provided practical insights on policy prioritization, implementation challenges, measurable impacts achieved, and differentiated strategies for supporting women-owned and youth-led businesses.
Speakers:
Daniel Lauchenauer, Head of Cooperation, Embassy of Switzerland in South Africa
Mohammed Bajodah, Head, Financial Inclusion, Saudi Central Bank (SAMA)
Nontobeko Lubisi, Director, Financial Inclusion, National Treasury of South Africa
Moderator:
Ghada Teima, Principal Operations Officer, International Finance Corporation