Bank Financing of SMEs in Five Sub-Saharan African Countries : The Role of Competition, Innovation, and the Government
This paper provides an overview of the state of access to bank financing for SMEs in five Sub-Saharan African countries and analyzes the drivers behind banks' involvement with SMEs. The paper builds on data collected through five in-depth stud...
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| Format: | Policy Research Working Paper |
| Language: | English en_US |
| Published: |
World Bank, Washington, DC
2013
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| Subjects: | |
| Online Access: | http://documents.worldbank.org/curated/en/2013/08/18091735/bank-financing-smes-five-sub-saharan-african-countries-role-competition-innovation-government http://hdl.handle.net/10986/15994 |
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okr-10986-15994 |
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| recordtype |
oai_dc |
| repository_type |
Digital Repository |
| institution_category |
Foreign Institution |
| institution |
Digital Repositories |
| building |
World Bank Open Knowledge Repository |
| collection |
World Bank |
| language |
English en_US |
| topic |
ACCESS TO BANK ACCESS TO FINANCE ACCOUNT MANAGEMENT AGRICULTURAL LOANS AVAILABILITY OF CREDIT BALANCE SHEETS BANK ASSET BANK ASSETS BANK FINANCING BANK LENDING BANK LOANS BANK OF TANZANIA BANK OFFICIALS BANK POLICY BANKING SECTOR BANKING SECTOR ASSETS BANKING SYSTEMS BANKS BIG BANKS BORROWING BUSINESS PLANS CAPITAL LOANS CENTRAL BANK COLLATERAL COLLATERAL REGISTRIES COLLATERAL REGISTRY COLLATERAL REQUIREMENTS COLLATERALIZATION COMMERCIAL BANK COMMERCIAL BANKS CONCEPTUAL FRAMEWORK CONTRACT ENFORCEMENT COOPERATIVES CORPORATE BOND CREDIT BUREAU CREDIT BUREAUS CREDIT CONSTRAINTS CREDIT DEPOSIT CREDIT GUARANTEE CREDIT GUARANTEES CREDIT INFORMATION CREDIT LINE CREDIT LINES CREDIT MARKETS CREDIT RECORDS CREDIT REGISTRIES CREDIT REPORTING CREDIT REPORTING SYSTEMS CREDIT RISK CREDIT RISK MANAGEMENT CREDITOR CREDITOR RIGHTS CREDITORS CROWDING OUT DEBT DEBT MARKETS DEPOSIT DEPOSITS DEVELOPING COUNTRIES DEVELOPING COUNTRY DEVELOPMENT BANK DEVELOPMENT BANKS DEVELOPMENT FINANCE DEVELOPMENT FINANCE INSTITUTION DISPUTE RESOLUTION DIVERSIFICATION DOMESTIC BANKS ECONOMIC DEVELOPMENT ECONOMIC GROWTH ECONOMICS EMPLOYMENT ENABLING ENVIRONMENT ENFORCEMENT OF CONTRACTS ENTREPRENEURSHIP EQUITY FUNDS EXCHANGE RATE EXTERNAL FINANCE EXTERNAL FINANCING FACTORING FINANCIAL CONTRACTS FINANCIAL DEEPENING FINANCIAL DEVELOPMENT FINANCIAL INSTITUTIONS FINANCIAL INTERMEDIARIES FINANCIAL INTERMEDIATION FINANCIAL SERVICES FINANCIAL STABILITY FINANCIAL STATEMENTS FINANCIAL SYSTEMS FINANCING OBSTACLES FOREIGN BANKS FORM OF CREDIT GOVERNMENT BORROWING GOVERNMENT INVOLVEMENT GOVERNMENT POLICIES GOVERNMENT POLICY GOVERNMENT SECURITIES GOVERNMENT SUPPORT GROUP LOANS GUARANTEE FEE GUARANTEE FUND GUARANTEE FUNDS GUARANTEE PRODUCT GUARANTEE PRODUCTS GUARANTEE SCHEME GUARANTEE SCHEMES HIGH INTEREST RATES HOLDING ID IDS IMMOVABLE ASSETS INFLATION INFLATION RATES INFORMAL FINANCE INFORMATION SHARING INTEREST RATE INTEREST RATES ON GOVERNMENT SECURITIES INTERNATIONAL BANK JUDICIAL ENFORCEMENT JUDICIAL SYSTEM LAWS LEGAL CONSTRAINTS LEGAL FRAMEWORK LEGISLATION LENDING INTEREST RATE LENDING TECHNIQUES LEVEL PLAYING FIELD LINES OF CREDIT LOAN LOAN GUARANTEE LOAN GUARANTEE PROGRAM LOAN PORTFOLIOS LOAN PRODUCTS LOAN RECOVERY LOAN TERM LOCAL CURRENCY MACROECONOMIC ENVIRONMENT MACROECONOMIC STABILITY MANDATES MARKET PARTICIPANTS MARKET PLAYERS MARKET SIZE MATURITY MATURITY MISMATCHES MICROFINANCE MICROFINANCE INSTITUTIONS MICROFINANCE SECTOR MOVABLE COLLATERAL NEW MARKET OIL OPAQUE SMALL BUSINESSES OUTREACH PARTIAL CREDIT PAYMENT HISTORIES PORTFOLIO PRIME RATE PRIVATE CREDIT PRIVATE CREDIT BUREAU PRIVATE ENTERPRISES PRIVATE EQUITY PRIVATE SECTOR COMMERCIAL BANKS PROFITABILITY PROFITABLE BUSINESS REGULATORY FRAMEWORK REGULATORY STRUCTURES RELATIONSHIP LENDING RESERVE RESERVE BANK RETAIL BANKING RETURNS RISK MANAGEMENT SECURITIES SECURITIES MARKETS SECURITIZATION SMALL BUSINESS SMALL BUSINESS FINANCE SMALL BUSINESS LENDING SMALL ENTERPRISE SMALL ENTERPRISE FINANCE SMALL ENTERPRISES SMALL FIRM FINANCE START-UPS T-BILL T-BILL RATE TAX TECHNICAL ASSISTANCE TELECOMMUNICATIONS TRANSITION COUNTRIES TREASURY TREASURY BILL TREASURY BILL RATES UNION WORKING CAPITAL |
| spellingShingle |
ACCESS TO BANK ACCESS TO FINANCE ACCOUNT MANAGEMENT AGRICULTURAL LOANS AVAILABILITY OF CREDIT BALANCE SHEETS BANK ASSET BANK ASSETS BANK FINANCING BANK LENDING BANK LOANS BANK OF TANZANIA BANK OFFICIALS BANK POLICY BANKING SECTOR BANKING SECTOR ASSETS BANKING SYSTEMS BANKS BIG BANKS BORROWING BUSINESS PLANS CAPITAL LOANS CENTRAL BANK COLLATERAL COLLATERAL REGISTRIES COLLATERAL REGISTRY COLLATERAL REQUIREMENTS COLLATERALIZATION COMMERCIAL BANK COMMERCIAL BANKS CONCEPTUAL FRAMEWORK CONTRACT ENFORCEMENT COOPERATIVES CORPORATE BOND CREDIT BUREAU CREDIT BUREAUS CREDIT CONSTRAINTS CREDIT DEPOSIT CREDIT GUARANTEE CREDIT GUARANTEES CREDIT INFORMATION CREDIT LINE CREDIT LINES CREDIT MARKETS CREDIT RECORDS CREDIT REGISTRIES CREDIT REPORTING CREDIT REPORTING SYSTEMS CREDIT RISK CREDIT RISK MANAGEMENT CREDITOR CREDITOR RIGHTS CREDITORS CROWDING OUT DEBT DEBT MARKETS DEPOSIT DEPOSITS DEVELOPING COUNTRIES DEVELOPING COUNTRY DEVELOPMENT BANK DEVELOPMENT BANKS DEVELOPMENT FINANCE DEVELOPMENT FINANCE INSTITUTION DISPUTE RESOLUTION DIVERSIFICATION DOMESTIC BANKS ECONOMIC DEVELOPMENT ECONOMIC GROWTH ECONOMICS EMPLOYMENT ENABLING ENVIRONMENT ENFORCEMENT OF CONTRACTS ENTREPRENEURSHIP EQUITY FUNDS EXCHANGE RATE EXTERNAL FINANCE EXTERNAL FINANCING FACTORING FINANCIAL CONTRACTS FINANCIAL DEEPENING FINANCIAL DEVELOPMENT FINANCIAL INSTITUTIONS FINANCIAL INTERMEDIARIES FINANCIAL INTERMEDIATION FINANCIAL SERVICES FINANCIAL STABILITY FINANCIAL STATEMENTS FINANCIAL SYSTEMS FINANCING OBSTACLES FOREIGN BANKS FORM OF CREDIT GOVERNMENT BORROWING GOVERNMENT INVOLVEMENT GOVERNMENT POLICIES GOVERNMENT POLICY GOVERNMENT SECURITIES GOVERNMENT SUPPORT GROUP LOANS GUARANTEE FEE GUARANTEE FUND GUARANTEE FUNDS GUARANTEE PRODUCT GUARANTEE PRODUCTS GUARANTEE SCHEME GUARANTEE SCHEMES HIGH INTEREST RATES HOLDING ID IDS IMMOVABLE ASSETS INFLATION INFLATION RATES INFORMAL FINANCE INFORMATION SHARING INTEREST RATE INTEREST RATES ON GOVERNMENT SECURITIES INTERNATIONAL BANK JUDICIAL ENFORCEMENT JUDICIAL SYSTEM LAWS LEGAL CONSTRAINTS LEGAL FRAMEWORK LEGISLATION LENDING INTEREST RATE LENDING TECHNIQUES LEVEL PLAYING FIELD LINES OF CREDIT LOAN LOAN GUARANTEE LOAN GUARANTEE PROGRAM LOAN PORTFOLIOS LOAN PRODUCTS LOAN RECOVERY LOAN TERM LOCAL CURRENCY MACROECONOMIC ENVIRONMENT MACROECONOMIC STABILITY MANDATES MARKET PARTICIPANTS MARKET PLAYERS MARKET SIZE MATURITY MATURITY MISMATCHES MICROFINANCE MICROFINANCE INSTITUTIONS MICROFINANCE SECTOR MOVABLE COLLATERAL NEW MARKET OIL OPAQUE SMALL BUSINESSES OUTREACH PARTIAL CREDIT PAYMENT HISTORIES PORTFOLIO PRIME RATE PRIVATE CREDIT PRIVATE CREDIT BUREAU PRIVATE ENTERPRISES PRIVATE EQUITY PRIVATE SECTOR COMMERCIAL BANKS PROFITABILITY PROFITABLE BUSINESS REGULATORY FRAMEWORK REGULATORY STRUCTURES RELATIONSHIP LENDING RESERVE RESERVE BANK RETAIL BANKING RETURNS RISK MANAGEMENT SECURITIES SECURITIES MARKETS SECURITIZATION SMALL BUSINESS SMALL BUSINESS FINANCE SMALL BUSINESS LENDING SMALL ENTERPRISE SMALL ENTERPRISE FINANCE SMALL ENTERPRISES SMALL FIRM FINANCE START-UPS T-BILL T-BILL RATE TAX TECHNICAL ASSISTANCE TELECOMMUNICATIONS TRANSITION COUNTRIES TREASURY TREASURY BILL TREASURY BILL RATES UNION WORKING CAPITAL Berg, Gunhild Fuchs, Michael Bank Financing of SMEs in Five Sub-Saharan African Countries : The Role of Competition, Innovation, and the Government |
| geographic_facet |
Africa Sub-Saharan Africa |
| relation |
Policy Research Working Paper;No. 6563 |
| description |
This paper provides an overview of the
state of access to bank financing for SMEs in five
Sub-Saharan African countries and analyzes the drivers
behind banks' involvement with SMEs. The paper builds
on data collected through five in-depth studies in Kenya,
Nigeria, Rwanda, South Africa, and Tanzania between 2010 and
2012. The paper shows that the share of SME lending in the
overall loan portfolios of banks varies between 5 and 20
percent. Reasons for this finding vary, but key contributing
factors are the structure and size of the economy and the
extent of Government borrowing, the degree of innovation
mainly as introduced by foreign entrants to financial
sectors, and the state of the financial sector
infrastructure and enabling environment. |
| format |
Publications & Research :: Policy Research Working Paper |
| author |
Berg, Gunhild Fuchs, Michael |
| author_facet |
Berg, Gunhild Fuchs, Michael |
| author_sort |
Berg, Gunhild |
| title |
Bank Financing of SMEs in Five Sub-Saharan African Countries : The Role of Competition, Innovation, and the Government |
| title_short |
Bank Financing of SMEs in Five Sub-Saharan African Countries : The Role of Competition, Innovation, and the Government |
| title_full |
Bank Financing of SMEs in Five Sub-Saharan African Countries : The Role of Competition, Innovation, and the Government |
| title_fullStr |
Bank Financing of SMEs in Five Sub-Saharan African Countries : The Role of Competition, Innovation, and the Government |
| title_full_unstemmed |
Bank Financing of SMEs in Five Sub-Saharan African Countries : The Role of Competition, Innovation, and the Government |
| title_sort |
bank financing of smes in five sub-saharan african countries : the role of competition, innovation, and the government |
| publisher |
World Bank, Washington, DC |
| publishDate |
2013 |
| url |
http://documents.worldbank.org/curated/en/2013/08/18091735/bank-financing-smes-five-sub-saharan-african-countries-role-competition-innovation-government http://hdl.handle.net/10986/15994 |
| _version_ |
1764431968405028864 |
| spelling |
okr-10986-159942021-04-23T14:03:27Z Bank Financing of SMEs in Five Sub-Saharan African Countries : The Role of Competition, Innovation, and the Government Berg, Gunhild Fuchs, Michael ACCESS TO BANK ACCESS TO FINANCE ACCOUNT MANAGEMENT AGRICULTURAL LOANS AVAILABILITY OF CREDIT BALANCE SHEETS BANK ASSET BANK ASSETS BANK FINANCING BANK LENDING BANK LOANS BANK OF TANZANIA BANK OFFICIALS BANK POLICY BANKING SECTOR BANKING SECTOR ASSETS BANKING SYSTEMS BANKS BIG BANKS BORROWING BUSINESS PLANS CAPITAL LOANS CENTRAL BANK COLLATERAL COLLATERAL REGISTRIES COLLATERAL REGISTRY COLLATERAL REQUIREMENTS COLLATERALIZATION COMMERCIAL BANK COMMERCIAL BANKS CONCEPTUAL FRAMEWORK CONTRACT ENFORCEMENT COOPERATIVES CORPORATE BOND CREDIT BUREAU CREDIT BUREAUS CREDIT CONSTRAINTS CREDIT DEPOSIT CREDIT GUARANTEE CREDIT GUARANTEES CREDIT INFORMATION CREDIT LINE CREDIT LINES CREDIT MARKETS CREDIT RECORDS CREDIT REGISTRIES CREDIT REPORTING CREDIT REPORTING SYSTEMS CREDIT RISK CREDIT RISK MANAGEMENT CREDITOR CREDITOR RIGHTS CREDITORS CROWDING OUT DEBT DEBT MARKETS DEPOSIT DEPOSITS DEVELOPING COUNTRIES DEVELOPING COUNTRY DEVELOPMENT BANK DEVELOPMENT BANKS DEVELOPMENT FINANCE DEVELOPMENT FINANCE INSTITUTION DISPUTE RESOLUTION DIVERSIFICATION DOMESTIC BANKS ECONOMIC DEVELOPMENT ECONOMIC GROWTH ECONOMICS EMPLOYMENT ENABLING ENVIRONMENT ENFORCEMENT OF CONTRACTS ENTREPRENEURSHIP EQUITY FUNDS EXCHANGE RATE EXTERNAL FINANCE EXTERNAL FINANCING FACTORING FINANCIAL CONTRACTS FINANCIAL DEEPENING FINANCIAL DEVELOPMENT FINANCIAL INSTITUTIONS FINANCIAL INTERMEDIARIES FINANCIAL INTERMEDIATION FINANCIAL SERVICES FINANCIAL STABILITY FINANCIAL STATEMENTS FINANCIAL SYSTEMS FINANCING OBSTACLES FOREIGN BANKS FORM OF CREDIT GOVERNMENT BORROWING GOVERNMENT INVOLVEMENT GOVERNMENT POLICIES GOVERNMENT POLICY GOVERNMENT SECURITIES GOVERNMENT SUPPORT GROUP LOANS GUARANTEE FEE GUARANTEE FUND GUARANTEE FUNDS GUARANTEE PRODUCT GUARANTEE PRODUCTS GUARANTEE SCHEME GUARANTEE SCHEMES HIGH INTEREST RATES HOLDING ID IDS IMMOVABLE ASSETS INFLATION INFLATION RATES INFORMAL FINANCE INFORMATION SHARING INTEREST RATE INTEREST RATES ON GOVERNMENT SECURITIES INTERNATIONAL BANK JUDICIAL ENFORCEMENT JUDICIAL SYSTEM LAWS LEGAL CONSTRAINTS LEGAL FRAMEWORK LEGISLATION LENDING INTEREST RATE LENDING TECHNIQUES LEVEL PLAYING FIELD LINES OF CREDIT LOAN LOAN GUARANTEE LOAN GUARANTEE PROGRAM LOAN PORTFOLIOS LOAN PRODUCTS LOAN RECOVERY LOAN TERM LOCAL CURRENCY MACROECONOMIC ENVIRONMENT MACROECONOMIC STABILITY MANDATES MARKET PARTICIPANTS MARKET PLAYERS MARKET SIZE MATURITY MATURITY MISMATCHES MICROFINANCE MICROFINANCE INSTITUTIONS MICROFINANCE SECTOR MOVABLE COLLATERAL NEW MARKET OIL OPAQUE SMALL BUSINESSES OUTREACH PARTIAL CREDIT PAYMENT HISTORIES PORTFOLIO PRIME RATE PRIVATE CREDIT PRIVATE CREDIT BUREAU PRIVATE ENTERPRISES PRIVATE EQUITY PRIVATE SECTOR COMMERCIAL BANKS PROFITABILITY PROFITABLE BUSINESS REGULATORY FRAMEWORK REGULATORY STRUCTURES RELATIONSHIP LENDING RESERVE RESERVE BANK RETAIL BANKING RETURNS RISK MANAGEMENT SECURITIES SECURITIES MARKETS SECURITIZATION SMALL BUSINESS SMALL BUSINESS FINANCE SMALL BUSINESS LENDING SMALL ENTERPRISE SMALL ENTERPRISE FINANCE SMALL ENTERPRISES SMALL FIRM FINANCE START-UPS T-BILL T-BILL RATE TAX TECHNICAL ASSISTANCE TELECOMMUNICATIONS TRANSITION COUNTRIES TREASURY TREASURY BILL TREASURY BILL RATES UNION WORKING CAPITAL This paper provides an overview of the state of access to bank financing for SMEs in five Sub-Saharan African countries and analyzes the drivers behind banks' involvement with SMEs. The paper builds on data collected through five in-depth studies in Kenya, Nigeria, Rwanda, South Africa, and Tanzania between 2010 and 2012. The paper shows that the share of SME lending in the overall loan portfolios of banks varies between 5 and 20 percent. Reasons for this finding vary, but key contributing factors are the structure and size of the economy and the extent of Government borrowing, the degree of innovation mainly as introduced by foreign entrants to financial sectors, and the state of the financial sector infrastructure and enabling environment. 2013-10-01T20:54:34Z 2013-10-01T20:54:34Z 2013-08 http://documents.worldbank.org/curated/en/2013/08/18091735/bank-financing-smes-five-sub-saharan-african-countries-role-competition-innovation-government http://hdl.handle.net/10986/15994 English en_US Policy Research Working Paper;No. 6563 CC BY 3.0 IGO http://creativecommons.org/licenses/by/3.0/igo/ World Bank World Bank, Washington, DC Publications & Research :: Policy Research Working Paper Publications & Research Africa Sub-Saharan Africa |