By Elizabeth Wasunna-Ochwa
The first half of 2025 tested the resolve of many small and medium enterprises (SMEs) in Africa. Rising costs of doing business, uncertain global markets, and climate-related disruptions continue to weigh heavily. Yet amid these pressures, SMEs remain resilient, creating jobs, sustaining communities, and driving new ideas forward.
What stands out for me is that SMEs cannot be reduced to “portfolios” on a banker’s desk. Each one is run by people with aspirations, sacrifices, and determination. And if we remember that today’s multinationals once started as small businesses, then the duty of banks becomes clear: to listen to entrepreneurs early and walk with them as they grow.
At Absa, this approach has shaped how we engage SMEs this year.
Four lessons stand out:
- Support growth with more than capital
Many businesses start by copying trends, but few survive without a strong foundation. Access to capital is critical, but it is not enough. SMEs need advice, mentorship, and insights into how to build sustainable businesses.
It is therefore imperative that we make it a priority to offer capacity-building and practical guidance, not just loans, to support the sustainable growth of SMEs.
- Exposure matters as much as funding
Survival is important, but significance comes when businesses connect beyond their borders. Earlier this year, we took Absa Business Club members to Estonia, Finland, and the United States for market immersion. These trips showed that African SMEs face global challenges — but also global opportunities. Exposure helps them benchmark, learn, and scale with confidence.
- Women entrepreneurs cannot be left behind
Women form 58% of Africa’s workforce, yet they still face a $42 billion financing gap. This is not just an equity issue; it is a missed growth opportunity. Partnerships with institutions such as Women’s World Banking and the IFC have proven to help alleviate this gap by combining credit with training and export readiness support for women-led SMEs. The early results show more women entering regional markets and strengthening value chains.
- Build solutions around real needs
When solutions are designed with SMEs, they are more effective. These solutions can be developed from listening to direct SME feedback and creating solutions that actually work for them such as business credit cards. It helps ease cash flow pressures and makes payments simpler. Purposeful products like these strengthen trust and make SMEs feel heard.
Looking ahead
The first half of 2025 has reminded us that SMEs and midsized businesses need solutions that respect their realities. At Absa, our commitment for the rest of the year is clear: expand access to finance, strengthen capacity-building, and open new trade doors across Africa.
SMEs remain the backbone of our economies and the pipeline for Africa’s next generation of corporates. Walking with them is not optional, it is how we secure sustainable growth for the bank, our customers, and the continent.
The writer is the Business Banking Director at Absa Bank Kenya