Report finds $209bn funding gap for Black-owned African businesses, Nigeria accounts for $131bn

Black-owned and Black-led businesses in five African markets face a $209bn funding gap, a new report by British International Investment and Swedfund has found. Nigeria carries the largest share of that gap at $131bn.

The report, titled 'Understanding the Investment Gaps in Black-Owned and -led Businesses in Sub-Saharan Africa', covers South Africa, Nigeria, Kenya, Côte d'Ivoire and Senegal. It combines quantitative market analysis with stakeholder consultations to show where BOLD businesses stand and what limits their access to capital.

Nigeria leads the gap

Across the five countries, BOLD businesses account for an estimated $209bn financing gap, about four times larger than the gap for non-BOLD businesses. Across sub-Saharan Africa, the report puts the gap at $1.842tn.

Nigeria’s $131bn is followed by South Africa at $45bn and Kenya at $23bn. Senegal has a gap of $5.7bn while Côte d'Ivoire has $4.6bn. The figures show the challenge is large in smaller markets too.

The report says BOLD businesses make up between 89 per cent and 99 per cent of small businesses in the five markets. Their representation drops to 40 per cent of larger businesses in Kenya and 35 per cent in South Africa. That gap points to the difficulty they face in growing into bigger companies, where more finance is usually available.

Barriers differ by market

The barriers to capital vary by country. In Kenya, stakeholders cited limited access to investor networks and early-stage capital. In Nigeria, access to hard-currency financing was a more prominent constraint. The report says this reinforces the need for locally tailored investment strategies, financing solutions and technical assistance.

The research is part of BII’s Black Ownership and Leadership for Development initiative, set up in 2022 to increase capital flows to Black-owned and Black-led businesses in sub-Saharan Africa. The report is meant to give investors, fund managers and development finance institutions a clearer view of the barriers and the investment opportunity across the five markets.

Quotes and takeaways

Managing Director and Head of Africa at British International Investment, Chris Chijiutomi, said Black-owned and Black-led businesses are a driving force behind African economies, yet many continue to face significant barriers to accessing capital. He said: 'Expanding opportunity for these businesses can help reduce inequalities, contributing to SDG 10, while unlocking their potential to drive growth, create jobs and foster innovation. This research gives us a clearer picture of the barriers that constrain funding and shows us how to take action.'

Regional Director for West Africa at Swedfund, Kitanha Toure, said the insights are directly linked to Swedfund’s institutional commitment to contribute to SDG 10, reduced inequalities. She said: 'Our strategy focuses on increasing investment in low-income markets, improving access for the underserved, and strengthening local ownership and decision-making.'

For Nigerian BOLD businesses, the $131bn gap and the hard-currency constraint point to a financing problem that is not just about size. It affects how firms can access capital to scale, especially where foreign currency funding is needed.