Nov 10, 2025

Over the past decade, Africa has made enormous progress in financial inclusion. Millions of people who once operated entirely in cash are now part of the digital economy. For consumers, that shift has been transformative. But for small businesses, inclusion is only the beginning. The next chapter is about enablement, giving small and medium-sized enterprises the tools, credit, and confidence to grow. ‍ The data shows a turning point The latest SME Banking Report 2025, created by African Banker in collaboration with Backbase, highlights just how quickly priorities are changing. In 2022, only 19 percent of African banks said they focused on SME banking. By 2025, that figure has risen to 26 percent, and 83 percent of banks are now planning major investments in SME services. These numbers tell a simple story: banks increasingly see SME banking as a path to sustainable growth. The segment is no longer viewed as too complex or unprofitable. It's becoming a core part of long-term strategy. From access to empowerment Financial inclusion opened the door. But for SMEs, having a bank account is only a starting point. What matters most is how that relationship helps them run their businesses more efficiently. Many still struggle to access credit or navigate complex onboarding processes. According to the report, 84 percent of banks now serve SMEs through mobile channels, yet only 42 percent offer full digital account opening. That gap shows how inclusion and empowerment are not the same thing. SMEs want banking that saves time, builds trust, and supports their day-to-day decisions. The good news is that the technology to deliver this already exists. Designing for growth One of the most encouraging shifts we're seeing across the continent is the move toward simpler, more human-centered design. Digital transformation used to mean adding more features. Today, it's about removing friction. Whether it's faster onboarding, easier access to working capital, or better data insights, the best digital banking experiences make life easier for small business owners. That simplicity builds loyalty. When an SME can open an account, apply for credit, and manage operations from one seamless platform, it creates trust, and trust leads to growth. Partnerships are expanding access Another theme from the report is the rise of partnerships between banks, fintechs, and mobile operators. Collaboration is what allows scale. We're seeing more banks tap into ecosystems that help them reach small business owners who were previously out of scope. These partnerships bring new capabilities, from data analytics to digital identity verification, that make SME banking faster, safer, and more accessible. When different players work together, the result is greater inclusion and better services for entrepreneurs across the continent. A shift in mindset What's happening across Africa is not just a change in technology; it's a change in perspective. SME banking is moving from a side segment to a strategic priority. It's where banks can make the biggest difference for their economies and their customers. The combination of data, design, and collaboration is creating the foundation for a more dynamic and inclusive financial system. The banks leading this transformation are the ones seeing SMEs not as smaller corporates, but as growth partners. They're building digital experiences that match the speed, creativity, and resilience of the businesses they serve. Looking ahead Africa has already proven what's possible with financial inclusion. The next opportunity is to turn that inclusion into real, measurable growth for small businesses. SME banking isn't just about servicing a segment; it's about supporting an entire ecosystem of entrepreneurs who power local economies. That's why SME banking is Africa's next growth story. To explore the data and insights behind this shift, read the SME Banking Report 2025 by African Banker and Backbase. Jarno van Hurne