Aligning Supply & Demand of Capital: Strategies for Strengthening Investment Readiness of SMEs
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:
SMEs often face significant challenges navigating unfamiliar financing options and weighing trade-offs between different capital types, while investors struggle to build strong pipelines and identify businesses ready to meet due diligence requirements. This mismatch between SME preparedness and investor expectations has long created barriers that prevent viable businesses from accessing the growth capital needed to scale and compete effectively.
This panel examined practical strategies for preparing SMEs for investment, covering essentials such as financial documentation, governance structures, and business model validation. Speakers shared insights on how intermediaries bridge knowledge gaps and support fit-for-purpose deal structuring, as well as investor perspectives on evaluating SMEs for investment potential. Case studies highlighted how targeted preparation strategies helped businesses evolve from investment-seeking to investment-ready, unlocking new opportunities for growth.
Speakers:
Bernardo Aparicio, Chief Executive, Standard Bank Mozambique
Dr. Dorothy Nyambi, Chief Executive Officer, Mennonite Economic Development Associates (MEDA)
Fanta Conde, Partner, CrossBoundary
Jared Miller, Chief Executive Officer, Accial Capital
Shaun Streaton, Chief Executive Officer, Urban Task Force Ltd.
Moderator:
Kalina B. Miller, Manager, FIG Southern Africa, International Finance Corporation (IFC)