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Supporting Small and Medium Enterprises in Sub-saharan Africa Through Blended Finance

1 January 2021
Case Study
Publisher : Center for Strategic and International Studies

16309

This report explores how blended finance can support Small and Medium Enterprises (SMEs) in Sub-Saharan Africa, which are crucial for economic development and job creation but face significant financing gaps. It highlights that traditional financial institutions often view SMEs as high-risk borrowers. The paper examines various blended finance tools, such as concessional debt, equity, and technical assistance grants, that can help de-risk investments and attract private capital. It discusses the prevalence of SMEs in sectors like agriculture and renewable energy, and the challenges they face, including climate change impacts.

Author(s) :

Daniel F. Runde, Conor M. Savoy, Janina Staguhn

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Key topics

Innovative Finance/ Blended Finance, Livelihood, Financial Inclusion, and Economic Empowerment, Rural Development and Agriculture

Also found in

Financial Stewardship, Sustainability, & Accountability

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