Top 10 finance and banking trends in Africa

|Dec 5|magazine1 min read

10. SMEs - South Africa

While the banking sector’s outlook is positive, the European Investment Bank believes that SMEs will face bottlenecks when it comes to finance.

“Despite the beneficial impact of the gradually improving economic conditions, the situation in some markets might get worse before recovering. In general, banks have good capital and liquidity positions, which are closely linked to their conservative risk appetite and management. However, the flipside is that SMEs consider high interest rates and strict collateral requirements as obstacles in accessing finance,” commented the bank.