
The Missing Middle: The Structural Financing Gap That Keeps SMEs Small
Small and medium-sized enterprises (SMEs) drive over 90% of African businesses and are vital to employment, innovation, and industrialisation. Yet many remain trapped in the “missing middle”—too large for microfinance but too small or informal for bank loans or venture capital. This structural financing gap limits their ability to expand, modernise, or join regional value chains. Without growth capital, SMEs operate below potential, reinforcing inequality and slowing Africa’s broader economic transformation and competitiveness.









