PME Access to Financing: “In Africa, the money is there; what’s missing are businesses worth financing,” says Meless Serge Agnimel, founder of GPG Consulting
Meless Serge Agnimel, a strategy and finance consultant, is the founder of GPG Consulting, a firm specializing in supporting small and medium-sized enterprises (SMEs), financial structuring, and impact-driven development programs. For several years, he has been working with companies, financial institutions, and development programs on issues related to the bankability of SMEs, growth financing, governance, strengthening entrepreneurial capacity, and financial inclusion in Africa; all with a simple approach: transforming businesses that are still fragile or informal into credible economic actors capable of attracting financing and sustaining long-term growth. As part of the African Development Bank’s (AfDB) AFAWA (Affirmative Finance Action for Women in Africa) program, led by the African Guarantee Fund (AGF) through GPG Consulting, he supports several hundred women-led or women-focused SMEs across Africa in successfully establishing their business structures. In Burkina Faso, it is leading the implementation of the AFAWA program in partnership with Orabank, benefiting 200 participating SMEs. In this interview with C’Finance, Mr. Agnimel—an expert and practitioner—analyzes the real factors holding back the growth of African SMEs, including those led by women. In his view, “the real challenge for African SMEs is not finding financing, but becoming bankable.” He also discusses the measures needed to establish better governance for the continent’s SMEs, which should help ensure their bankability and, consequently, their long-term competitiveness. Finally, he offers a glimpse into the AFAWA program while providing a mid-term assessment of its implementation, which he describes as “overall very encouraging and particularly satisfactory.”
C’Finance (C.F): What role do SMEs play in the ecosystem of African economies, particularly within the WAEMU?
Meless Serge Agnimel (M.S.A): SMEs are not just a segment of the African economy; they are its backbone. Within the WAEMU region, as in most African economies, they account for more than 90% of the economic fabric and contribute to more than 60% of jobs, depending on the country. In Côte d’Ivoire, Senegal, Burkina Faso, Benin, and Togo, they are the main drivers of local economic activity and entrepreneurship.
But we must be realistic: their actual economic impact falls short of their sheer number. This makes one thing very clear: we have many SMEs, but still too few companies capable of creating value on a large scale, innovating sustainably, or integrating into competitive value chains. The challenge today, therefore, is no longer simply to create SMEs, but to transform them into well-structured, productive companies capable of scaling up. “Africa’s economic future will depend less on the number of companies created than on our ability to build strong and competitive small and medium-sized enterprises.”
C.F.: Despite their prominent role in the economies, SMEs on the continent face constraints that prevent them from realizing their growth potential. What are the main constraints that SMEs face?
M.S.A: The constraints facing African SMEs are well known, but their relative importance is often misjudged. There is a lot of talk about financing, but the most critical obstacles are primarily internal:Poor governance, a lack of financial oversight, and poorly structured operations. Added to this are external constraints: limited access to formal markets, a regulatory environment that is sometimes unstable, and financial systems that are still ill-suited to the risk profile of SMEs. In reality, the challenges faced by SMEs are not isolated; they are systemic.
C.F.: Among these constraints, limited access to financing for SMEs is considered the most significant challenge. Do you agree, or do you think the real problem lies elsewhere—specifically in organizational structure or management?
M.S.A.: To say that the problem facing African SMEs is financing is a partial—if not misleading—view. Financing is rarely the root cause; it is the consequence. A bank or investor does not finance an ambition; it finances a structure capable of demonstrating its viability and managing its risk. However, many SMEs have not yet reached that level of maturity. The real challenge is bankability. “In Africa, the money is there. What’s missing are companies that are bankable.”
C.F.: What explains or accounts for the limited organizational capacity of SMEs?
M.S.A.: The limited organizational capacity of African SMEs can be explained by a combination of deep-rooted factors. First, there is a lack of training in strategic and financial management. Many entrepreneurs are excellent operators but have not been prepared to steer a growing business. Second, access to high-quality, structured, and ongoing support remains limited. Finally, there is an entrepreneurial culture historically marked by informality, where performance relies more on intuition than on rigorous management systems. It is therefore not a problem of capacity, but a problem of the ecosystem.
C.F.: You are a facilitator in a program that supports women entrepreneurs across the African continent. Are there any challenges unique to women-led SMEs?
M.S.A.: Yes, women-led SMEs face specific challenges that go far beyond the issue of financing alone. The primary obstacle is indeed access to capital. In many African countries, women entrepreneurs find it more difficult to provide solid collateral, particularly because their access to land or real estate ownership remains limited. Yet, in our financial systems, land remains one of the main forms of collateral required by banks. This reality creates, from the outset, a form of structural inequality in access to credit.
Added to this are persistent sociocultural constraints: more limited access to business and decision-making networks, difficulty gaining entry into certain strategic economic circles, and the burden of family and social responsibilities, which sometimes limit the time devoted to growing the business.
We also observe that many women entrepreneurs operate in sectors with low levels of capitalization, with more limited access to strategic information, structured markets, and high-level support mechanisms. But what is particularly interesting is that, despite these constraints, women-led businesses often demonstrate very strong performance in terms of financial discipline, resilience, and risk management.
The real issue, therefore, is not women’s ability to start businesses or perform well, but rather equitable access to opportunities, strategic resources, and appropriate financing mechanisms. “In Africa, women entrepreneurs do not lack potential; all too often, they still lack equitable access to the drivers of growth.”
C.F.: What solutions do you recommend to address the issue of SME structuring in Africa in a sustainable way?
M.S.A.: The issue of SME structuring in Africa cannot be resolved through isolated actions or one-off training programs. It requires a profound transformation of the entrepreneurial and financial ecosystem. First, it is important to understand that a well-structured SME is not simply a business that keeps accounts. It is a business capable of managing its growth, producing reliable financial information, controlling its risks, formalizing its governance, and anticipating its financing needs.
The top priority, therefore, must be to strengthen the managerial and financial capabilities of business leaders. Many African SMEs are still run in a very intuitive manner. Entrepreneurs need guidance toward a management culture based on data, performance metrics, strategic planning, and financial discipline.
Next, it is essential to professionalize support mechanisms. Too many programs remain theoretical or standardized. SMEs need localized, sector-specific, and personalized support that incorporates mentoring, operational coaching, and ongoing monitoring. Building this structure does not happen overnight; it is a gradual process that accompanies the company’s growth cycle.
We must also address the quality of the financial information produced by SMEs. In many cases, difficulties in accessing financing stem from financial statements that are incomplete, unreliable, or disconnected from operational reality. Without financial transparency, however, it is virtually impossible for a bank or investor to properly assess risk.
Furthermore, financial institutions themselves must adapt their approaches. Traditional risk analysis models are often ill-suited to the realities of African SMEs. It is becoming necessary to develop more flexible mechanisms that better incorporate analysis of potential, business flows, and sector dynamics.
Finally, I believe we need to change our perspective on SMEs in Africa. For a long time, the focus has been on business creation. Today, the real challenge is consolidation and scaling up. We must build SMEs capable of surviving, growing, innovating, and becoming true regional economic champions.
C.F.: Regarding access to capital, what are the alternatives for improving SMEs’ access to financing (the role of the government, banks, financial intermediaries, SMEs, etc.)?
M.S.A.: Access to financing for SMEs is, above all, a matter of aligning the various actors within the economic and financial ecosystem. Governments have a central role to play, particularly through the establishment of guarantee mechanisms, tax incentives, and a regulatory environment conducive to SME development. Several African countries have already launched promising initiatives in this regard. In Burkina Faso, Côte d’Ivoire, Senegal, and Mali, programs such as the FBDES, FGPME, FONGIP, and FGSP help support SMEs. However, these mechanisms would benefit from being more flexible, more accessible, and better adapted to the realities of SMEs.
We also observe that many women entrepreneurs operate in sectors with low levels of capitalization, with more limited access to strategic information, structured markets, and high-level support mechanisms. But what is particularly interesting is that, despite these constraints, women-led businesses often demonstrate very strong performance in terms of financial discipline, resilience, and risk management.
The real issue, therefore, is not women’s ability to start businesses or perform well, but rather equitable access to opportunities, strategic resources, and appropriate financing mechanisms. “In Africa, women entrepreneurs do not lack potential; all too often, they still lack equitable access to the drivers of growth.”
C.F.: What solutions do you recommend to address the issue of SME structuring in Africa in a sustainable way?
M.S.A.: The issue of SME structuring in Africa cannot be resolved through isolated actions or one-off training programs. It requires a profound transformation of the entrepreneurial and financial ecosystem. First, it is important to understand that a well-structured SME is not simply a business that keeps accounts. It is a business capable of steering its own growth, producing reliable financial information, managing its risks, formalizing its governance, and anticipating its financing needs.
The top priority must therefore be to strengthen the managerial and financial capabilities of business leaders. Many African SMEs are still run in a highly intuitive manner. Entrepreneurs must be guided toward a management culture based on data, performance metrics, strategic planning, and financial discipline.
Next, it is essential to professionalize support mechanisms. Too many programs remain theoretical or standardized. SMEs need localized, sector-specific, and personalized support that incorporates mentoring, operational coaching, and ongoing monitoring. This kind of structure cannot be established in a matter of days; it is a gradual process that accompanies the company’s growth cycle.
Efforts must also be made to improve the quality of financial information produced by SMEs. In many cases, difficulties in accessing financing stem from financial statements that are incomplete, unreliable, or disconnected from operational reality. Without financial transparency, however, it is virtually impossible for a bank or investor to accurately assess risk.
Furthermore, financial institutions themselves must adapt their approaches. Traditional risk analysis models are often ill-suited to the realities of African SMEs. It is becoming necessary to develop more flexible mechanisms that better incorporate analysis of potential, business flows, and sector dynamics.
Finally, I believe we need to change our perspective on SMEs in Africa. For a long time, the focus has been on business creation. Today, the real challenge is consolidation and scaling up. We must build SMEs capable of surviving, growing, innovating, and becoming true regional economic champions.
C.F.: Regarding access to capital, what are the alternatives for improving SMEs’ access to financing (the role of the government, banks, financial technology companies, SMEs, etc.)?
M.S.A.: Access to financing for SMEs is, above all, a matter of alignment among the various players in the economic and financial ecosystem. Governments have a central role to play, particularly through the establishment of guarantee mechanisms, tax incentives, and a regulatory environment conducive to SME development. Several African countries have already launched promising initiatives in this regard. In Burkina Faso, Côte d’Ivoire, Senegal, and Mali, programs such as the FBDES, FGPME, FONGIP, and FGSP help support SMEs. However, these mechanisms would benefit from being more flexible, more accessible, and better adapted to the realities of SMEs.
Banks must also adapt their risk analysis models. Some African banks have already made significant progress by developing products better suited to SMEs and gaining a deeper understanding of local realities. Technical and financial partners also play a key role in helping businesses improve their structure and bankability. Through support and technical assistance programs, organizations like GPG Consulting help SMEs meet the requirements of the financial system.
Above all, however, SMEs must understand that access to financing requires preparation. A business becomes bankable through structured management, reliable financial data, and a clear vision for its growth. “Financing isn’t something you simply ask for; it’s prepared for and built over time, because financing isn’t a starting point. It’s the culmination of a process.”
C.F.: There are alternative financing solutions, such as private equity, which, unfortunately, remain little known or face a certain amount of (cultural) resistance from SME founders. What is your take on this?
M.S.A.: Private equity still suffers from a lack of understanding and cultural resistance. Many entrepreneurs view opening up their company’s capital as a loss of control, when in reality it is a lever for growth. Added to this is an ecosystem still under development, with a limited number of players and investment amounts that are often unsuitable for small SMEs. Yet in mature economies, private equity is a key driver of business transformation.
C.F.: As part of the AFAWA (Affirmative Finance Action for Women in Africa) Program, through GPG Consulting, you support several hundred women-owned or women-focused SMEs across the African continent. Could you briefly describe this program and explain what led to its creation?
M.S.A.: AFAWA, led by the African Development Bank and implemented by AGF, is a continental initiative born out of the observation that African women entrepreneurs face a significant gap in access to financing, despite their major contribution to the continent’s economy (a gap of $42 billion). It is a program designed to address a structural issue: many women-led SMEs have real growth potential but remain ill-prepared for the demands of the traditional financial system. AFAWA therefore aims to bridge this gap by working to both improve access to financing and build the capacity of these businesses.
Specifically, the program combines technical support, training, mentoring, financial structuring, and assistance in building relationships with financial institutions to enable women-owned SMEs to become stronger, more credible, and more competitive. It is precisely this integrated approach that is AFAWA’s strength. The program goes beyond simply facilitating access to capital; above all, it seeks to build a new generation of African SMEs that are better structured, more resilient, and capable of sustaining their growth over the long term. “AFAWA’s true impact is measured not only by the funding it mobilizes, but by the quality of the businesses the program helps to build.”
C.F.: Specifically, what does the AFAWA program offer its beneficiaries?
M.S.A.: Specifically, the program enables women entrepreneurs to benefit from technical and managerial training tailored to their level of maturity, personalized strategic support, and mentoring aimed at strengthening their leadership and growth capabilities. The businesses also receive support on key topics such as financial management, governance, formalizing their operations, preparing financing applications, and improving their bankability. AFAWA also plays an important role in connecting SMEs with partner financial institutions to reduce the barriers that traditionally limit women entrepreneurs’ access to financing.
But beyond the technical tools, the program seeks above all to bring about a genuine shift in entrepreneurial mindset. The goal is to help beneficiaries move from a mindset focused on survival or informal management to a structured business approach, capable of planning for growth, securing financing, and seizing opportunities on a larger scale.
C.F.: What is your assessment of the program’s implementation so far?
M.S.A.: At this stage of the program’s implementation—even though we’re still halfway through—the feedback has been very encouraging overall and particularly satisfying. One of the most striking developments is the shift in perception observed among many participants. Many SMEs initially came with expectations focused primarily on financing. But as the program progressed, they realized that the real key to sustainable access to financing lies in the company’s structure, the quality of its management, and mastery of management tools.
We are also seeing a gradual improvement in the quality of the businesses we support: better internal organization, more rigorous formalization of activities, improved financial documentation, and a better understanding of financial institutions’ requirements. Female entrepreneurs are also gaining greater confidence in their interactions with banks and financial partners.
The partner banks we work with also express satisfaction with the quality of the support provided and the progress made by the SMEs we assist. In fact, even as certain capacity-building phases are still underway, several businesses have already begun to secure financing, which is a very positive sign of the effectiveness of the approach we’ve implemented.
Beyond the numbers, I believe the main source of satisfaction remains the transformative momentum underway among the beneficiaries. We are seeing the emergence of female entrepreneurs who are more organized, more strategic in their vision, and better prepared to position their businesses for sustainable growth. “The true success of a program like AFAWA is not measured solely by the financing obtained, but by the ability of the supported SMEs to become sustainably financeable and competitive.”
C.F.: At the end of the capacity-building phase, certain SMEs will receive financing. What will be the selection process or the criteria that will be used?
M.S.A.: Access to financing at the end of the program is not automatic; rather, it is based on a comprehensive assessment of the maturity and viability of the supported companies. The goal is not simply to finance SMEs, but to ensure that the selected companies have the necessary capabilities to use financial resources effectively and sustain their growth over the long term.
Partner financial institutions therefore analyze several key factors. Of course, there are the traditional criteria such as the quality of the business model, the profitability of the business, the ability to repay loans, and the consistency of the stated needs. But today, the analysis goes much further. Banks also pay particular attention to the quality of governance, the company’s organizational structure, the reliability of financial information, the CEO’s leadership skills, and the company’s strategic vision. An SME that has a firm grasp of its financials, understands its market, and demonstrates sound management naturally inspires greater confidence.
In a program like AFAWA, another key factor is the beneficiaries’ ability to implement the recommendations resulting from the mentoring. Companies that demonstrate real progress in their organizational structure, financial discipline, and formalization significantly increase their chances of securing financing.
It’s also important to remember that financing must remain tailored to each SME’s level of maturity. The challenge is not to provide financing quickly, but to do so responsibly and sustainably, in order to avoid undermining businesses that are not yet ready to take on certain levels of financial commitment. “Sustainable financing does not merely reward a company’s potential; above all, it rewards its ability to inspire confidence and demonstrate maturity.”
In closing, I would like to extend my sincere thanks to C’Finance, Burkina Faso’s leading news outlet on economic and financial issues. I would like to commend the remarkable work accomplished by the entire team. Congratulations also on the Award for Excellence in Financial Journalism won last April in Kigali, Rwanda, which confirms this commitment to excellence and attests to the publication’s professionalism and the quality of its dedication to financial reporting in Africa.
Thank you, above all, for your ongoing support of African economic actors and for your contribution to promoting financial information produced by Africa and for Africa. In a context where the continent’s economic narratives are still too often shaped from the outside, this work is essential.
Interview conducted by the
C’Finance Editorial Team