Unlocking Supply Chain Finance Where It Is Needed The Most
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:
Supply chain finance had emerged as a critical solution for SMEs struggling with cash flow challenges, with the global SCF market exceeding $2.3 trillion and growing at 22.7% annually. Over 60% of new SCF adopters in 2023 were SMEs benefiting from digital platforms, AI-driven credit assessments, and blockchain verification.
The panel addressed critical gaps including high transaction costs for smaller businesses, limited access in rural areas, and digital adoption barriers. Discussions covered innovative technology solutions, alternative data models, and strategies for democratizing supply chain finance access for underserved SME segments. The session also explored the regulatory enablers needed to scale SCF solutions, especially to reach the most underserved SMEs in value chains.
Speakers:
Femi Akinrebiyo, Global Manager, Manufacturing and Trade Supplier Finance, International Finance Corporation (IFC)
Natalie Van Graan, Director, Trade Products South Africa, Standard Chartered Bank
Ram Iyer, Founder & Chief Executive Officer, Vayana
Sherif Lokman, Sub Governor, Central Bank of Egypt
Moderator:
Makiko Toyoda, Global Manager, International Finance Corporation (IFC)