Recently, data and technology leader, Experian, hosted a pivotal event at Innovation City Cape Town, South Africa, to spotlight the findings of the Finfind SA MSME Access to Finance Report 2025, and explore the way forward.
The event brought together a dynamic mix of fintech funders, industry leaders, and innovators to unpack the report’s insights and collaborate on solutions. The report reveals a striking reality: 86.5% of MSMEs seeking finance have annual turnovers below R1 million, yet many are excluded from funding due to rigid criteria and outdated risk models. Traditional financial institutions often favour larger, more established businesses, leaving micro-enterprises behind despite their viability and growth potential for the country.
Key sectors such as manufacturing, accommodation and food services, agriculture, forestry, and fishing account for nearly 60% of all funding requests yet remain underserved. Meanwhile, the ICT sector, which represents just 5.5% of demand, is oversupplied with 125 finance products.
Who Are South Africa’s MSMEs?
The data paints a vivid picture of the MSME landscape in South Africa:
- Provincial growth in funding applications has gone up since 2018, with Mpumalanga up 78%, Northern Cape up 65%, and Eastern Cape up 36%.
- Black-owned businesses now represent 83.7% of funding requests, a significant rise from 66% in 2018.
- Female ownership has grown modestly to 34%, but funding products targeting women have dropped by 33%.
- Creditworthiness remains a challenge, with 49.1% of owners in enterprises under R1 million having poor credit scores.
Experian’s Role: Data-Driven Solutions for MSMEs
To bridge the finance gap, Experian is advancing several key strategies:
- Smarter Credit Scoring
Using alternative data to build more inclusive credit profiles. - Simplified Digital Access
Mobile-first tools and AI-driven checks reduce friction in the funding journey. - Financial Literacy & Capacity Building
Training programs help MSMEs improve financial management and become funding-ready. - Public-Private Collaboration
There is growing momentum for partnerships between government, Development Finance Institutions (DFIs), and private sector players to co-create blended finance solutions that de-risk lending to micro-enterprises. Experian in partnership with Finfind is at the forefront of these collaborative efforts, working to develop innovative funding models that address the unique needs of MSMEs. - Sector-Specific Product Innovation
Tailoring financial products to the unique needs of high-potential sectors, like agriculture, manufacturing, and tourism, can unlock growth and job creation in underserved regions. Experian’s data-driven approach ensures that funding products are aligned with the actual demand and needs of MSME.
A Call for Collaboration
Jaco van Jaarsveldt, Chief Strategy and Innovation Officer at Experian in South Africa, summed it up: “The report has provided us with a clear roadmap. A deeper, data-driven understanding of demand is crucial to crafting effective supply solutions.”
He added that the event was not just about identifying problems, but about building solutions through collaboration.
Finfind CEO Darlene Menzies echoed this, noting that: “Formal micro enterprises with turnovers under R1 million create over 80% of MSME jobs and represent 85% of funding need—yet they remain the most underserved. If we’re serious about job creation, we must support the businesses creating the jobs.”