Small business banking: Africa’s next growth segment

African banks are accelerating their transformation to better serve small and medium-sized enterprises through digital channels, data-driven lending, and new ecosystem partnerships.

This second edition of the Africa Digital Banking Experience Series, produced by African Banker in collaboration with Backbase, explores how banks are redefining SME banking through digital-first models, tailored products, and ecosystem partnerships driving growth and inclusion.

SMEs form the backbone of Africa’s economy, representing about 95% of businesses, 40% of GDP, and more than half of all employment, yet many still lack access to fit-for-purpose financial services.

The report delivers fresh insights from 203 banking leaders on:

The strategic shifts transforming SME banking
The digital gaps and opportunities shaping growth
How technology, AI, automation, and alternative data, is changing the game

Download the report to explore Africa’s next growth segment.

Get your copy Go to the Retail Banking Report 2025 instead

What are 203 African banking leaders focused on right now?

Based on responses from 203 senior executives across 40 countries, the findings highlight both the progress made and the gaps that remain.

SME banking is now a top strategic priority

83% of African banks plan significant investment in SME services, up from 19% in 2024

Mobile is the main engagement channel

84% of banks already serve SMEs through mobile platforms, reflecting the continent’s mobile-first reality

Onboarding remains a major pain point

Only 42% offer full digital account opening, showing a key opportunity to simplify and scale access

Bridging the digital skills gap

70% of banks now provide workshops or training to help SMEs adopt digital tools

AI and alternative data reshape lending

Nearly half of banks offer digital lending, using smarter data to expand credit access and reduce risk