AfDB Unveils Bold New Action Plan to Power Africa’s SMEs on SME Day 2025
As Africa marks SME Day 2025, the African Development Bank (AfDB) has reaffirmed its unwavering commitment to Small and Medium Enterprises (SMEs), launching a bold new SME Development Action Plan (2025–2030) to drive inclusive growth and unlock the continent’s entrepreneurial potential.
Recognizing SMEs as Africa’s economic backbone—accounting for over 80% of businesses and serving as key engines of job creation, innovation, and resilience—the Bank is shifting from fragmented interventions to a cohesive, ecosystem-wide strategy. This new direction aims to address long-standing challenges that hinder SME growth, including limited financing, regulatory bottlenecks, and infrastructure deficits.
The newly announced SME Development Action Plan is anchored on three strategic pillars: advisory services and technical assistance, access to markets, and access to finance. Through flagship initiatives such as the AfDB-EBRD SME Growth Facility and the SME Credit Catalyst, the Bank is deploying a mix of financing and technical support to prepare SMEs for investment and scale.
Also launched is the Link Africa program—designed to integrate SMEs into key value chains in agribusiness, logistics, renewable energy, and manufacturing, bolstering their competitiveness and long-term sustainability.
“These initiatives reflect our deep belief that Africa’s future is being built by its entrepreneurs,” said an AfDB spokesperson. “SMEs are not just economic units—they are engines of hope.”
Since 2020, the Bank has implemented 43 initiatives impacting over 27,000 SMEs across Africa, mobilizing $1.7 billion and creating nearly 8,000 full-time jobs. Additionally, under the Affirmative Finance Action for Women in Africa (AFAWA), $2.5 billion in financing has been approved to support over 24,000 women-owned enterprises.
However, significant challenges remain. Up to 80% of SMEs across the continent still lack access to formal financing, with the funding gap estimated at $330 billion. The AfDB emphasizes that real transformation will require ecosystem-level reforms and collective action from governments, the private sector, and global development partners.
“This is just the beginning,” said the AfDB. “Real change comes from collaboration. We call on all stakeholders—governments, private investors, and development actors—to join us in this journey.”
On SME Day 2025, the message is clear: Africa’s SMEs are ready to grow. With targeted investments, regulatory reforms, and strong partnerships, they can become the drivers of a prosperous, inclusive, and self-sustaining African economy.
