Access to Finance

The R350 Billion Funding Gap — Why MSMEs Are Struggling

Micro, Small and Medium Enterprises (MSMEs) make up over 90% of formal businesses in South Africa. Yet, most are unable to access the funding they need to grow.

According to the 2025 MSME Finance Report:

• • 85.6% of applicants with turnover under R1 million are rejected for funding.

• • These businesses also account for over 80% of MSME job creation.

• • The challenge? Lack of collateral and formal financial systems required by traditional lenders.

The Result:
A persistent R350 billion funding gap that stifles growth, job creation, and national economic potential.

Unlocking Growth

Bridging the R350 Billion Gap for MSMEs

At NFLA, we recognize that small businesses are the backbone of our economy. Yet the ones doing the most for job creation are the least likely to receive funding.

That’s why we’re committed to alternative financing models, collateral-free solutions, and capacity-building — to help MSMEs access the capital they need to thrive.