The Coalition for a Sustainable and Inclusive Private Sector Recovery, an international group of 20 development finance institutions that met in 2020, announced funding commitments of over $5.55 billion to micro, small and medium enterprises (MSMEs) in Africa between mid-2020 and late 2021, surpassing their set target of $4 billion over the period.
The coalition said it exceeded its initial target of 40%. It involves the EDFI association, the African Development Bank, the West African Development Bank (BOAD), FinDev Canada, the US International Development Finance Corporation, the Islamic Society for the Development of the Private Sector launched the coalition, and the Trade and Development Bank.
While micro, small and medium-sized enterprises are the economic engine of emerging and frontier economies, they are also more vulnerable to crises than large enterprises. In developing countries, formal small and medium enterprises contribute more than a third of gross domestic product and account for 52% of formal employment.
