Webinar: Financing SMEs in the time of COVID-19 (FR)
Making Finance Work for Africa (MFW4A) is hosting a webinar on " Financing SMEs in the time of COVID-19 (FR)"
Date: 25 june 2020 @ 1 pm GMT | 2 pm Casablanca | 3 pm Paris
This session will be held french.
The COVID-19 crisis in many African countries will be accompanied by a wide range of adverse economic shocks brought about by dramatic slow-down in economic activity and trade. For many small and medium-sized enterprises (SMEs), the immediate impacts of COVID-19 are being felt as they face drastic reductions in revenues due to reduced demand, with traditional sources of liquidity drying up. Many entrepreneurs face serious financial difficulties and have dramatically curtailed, if not closed their businesses – at least temporarily.
Even before the COVID-19 outbreak, most small businesses cited access to finance as the main barrier to growth. Some countries have introduced reforms that could help address constraints to SME lending, including those related to securitization, property rights, contract enforcement, collateral and insolvency regimes. Despite these efforts, many SMEs are often denied access to loans or subject to excessive collateral requirements because of information asymmetries. Sub-Saharan Africa has the largest proportion of financially constrained SMEs (54 percent) globally. The finance gap for the 44 million micro, small and medium-sized enterprises (MSMEs) in Sub-Saharan Africa was estimated at USD 331 billion in 2018.
COVID-19 has brought into focus the importance of digital technologies in servicing the SME sector. The digital revolution sweeping across Africa is favoring new trends and inroads in SME financing spearheaded by mobile money and fintech. Even the traditional modes of funding are responding through the use of technology. There is a need to accelerate these changes by helping innovative models of SMEs finance to flourish as well as stimulate the entrepreneurial potential of the African youth. This is all the more apparent in times of crisis where financial technologies can play an important role in not only enabling immediate responses, but also building a more resilient and capable SME Finance ecosystem going forward.
This webinar will feature active players in the SME finance space including a financial institution, a fund manager, a Fintech and an SME from Africa to discuss their current challenges and successes in scaling up finance for SMEs, and opportunities for digital innovations in the time of COVID-19.
The webinar will provide a platform for financial institution and fund managers as well as beneficiaries, including an SME and a FinTech to discuss practical experiences. The panelists will discuss :
- The main challenges that COVID-19 presents for their business
- How are banks, PE/VC funds and Fintechs supporting SMEs in the face of the COVID-19 fallout?
- How can digital technologies be leveraged to support SMEs in times of crisis?
- How are digital technologies paving the way for new transformative models in SME financing?