Nigeria, South Africa, others face $209 billion funding gap for Black-owned businesses — Report

A new report by British International Investment (BII) and Swedfund has uncovered a $209 billion financing gap for Black-owned and -led businesses across Nigeria, South Africa, Kenya, Senegal, and Côte d'Ivoire. Nigeria alone stands to lose $131 billion, surpassing the gaps in the other four countries combined. The report, titled 'Understanding the investment gaps in Black-owned and -led businesses in sub-Saharan Africa', highlights that Black-owned businesses make up nearly 100% of small enterprises in the region but face significant barriers to scaling up.

They represent 40% of larger businesses in Kenya and 35% in South Africa, underscoring the difficulty these companies have in accessing substantial financing. The report's findings emerge from the BII's Black Ownership and Leadership for Development (BOLD) initiative, which seeks to increase capital flow to Black-owned businesses in sub-Saharan Africa.

The research reveals that while Black-owned businesses dominate certain sectors like food systems, trade, services, light manufacturing, and agriculture, they struggle in more capital-intensive industries such as infrastructure, energy, and financial services due to higher funding requirements and specialized expertise needs. The report recommends a targeted investment approach, improved financing structures, and tailored solutions to help Black-owned businesses overcome these challenges and become investment-ready.

The report's timing is significant, coming shortly after the UK government announced a £15 million Growth Programme for Nigeria to boost economic transformation through private investment and reform-driven growth.