Black-owned businesses in Africa face $209bn financing gap

Black-owned and Black-led businesses in five sub-Saharan African markets face a combined financing gap of $209 billion, according to a report commissioned by British International Investment (BII) and Swedfund. The study, conducted by Open Capital Advisors, examined Nigeria, South Africa, Kenya, Senegal, and Côte d’Ivoire.

While Black-owned businesses represent between 89 percent and 99 percent of small enterprises in these markets, their presence diminishes as companies scale. In Kenya, they account for 40 percent of larger businesses, while in South Africa, the figure drops to 35 percent. This disparity highlights a structural bottleneck in the financing ecosystem that prevents small enterprises from transitioning into larger, capital-intensive firms.

Nigeria faces the largest individual deficit at $131 billion, representing 63 percent of the total gap identified across the five nations. South Africa follows with a $45 billion gap, Kenya with $23 billion, Senegal with $5.7 billion, and Côte d’Ivoire with $4.6 billion. The report notes that these businesses are heavily concentrated in sectors such as agriculture, food systems, trade, services, and light manufacturing.