Black-owned businesses in five African countries are short of $209bn, report finds
They are almost every small firm in Nigeria, South Africa, Kenya, Senegal and Côte d'Ivoire, but far fewer of the large ones. A study by two development financiers sets out how to close the gap.
PANM — Black-owned and Black-led businesses in five African countries face a combined financing gap of $209 billion, according to a report by British International Investment, the UK's development finance institution, and Swedfund, Nairametrics reports.
The gap by country
- Nigeria: $131 billion
- South Africa: $45 billion
- Kenya: $23 billion
- Senegal: $5.7 billion
- Côte d'Ivoire: $4.6 billion
Everywhere at the start, rarer at the top
- Black-owned and Black-led firms make up 89% to 99% of small businesses in the five countries.
- Their share falls as companies grow, to 40% of larger businesses in Kenya and 35% in South Africa.
- Their financing gap is about four times that of other businesses.
- They cluster in food, trade, services, light manufacturing and agriculture, and find it harder to grow in capital-heavy sectors such as infrastructure, energy and financial services.
The missing middle
The report highlights firms seeking $100,000 to $1 million in growth capital, too big for grants and too small for large institutional investors. In Kenya, businesses pointed to limited access to investor networks and early-stage money; in Nigeria, to access to hard-currency finance.
What it recommends
- Stronger pipelines of businesses ready for investment, and deeper local partnerships.
- More Black professionals among the people who decide where capital goes.
- Patient capital, local-currency finance, blended finance, risk-sharing and targeted technical help.
Chris Chijiutomi, head of Africa at British International Investment, said these businesses play a major role in African economies yet still struggle to raise capital, and that backing them drives growth, jobs and innovation. The study is part of the institution's Black Ownership and Leadership for Development initiative, launched in 2022.
Source: Nairametrics, reporting by Israel Ojoko, 15 October 2026.
