Access Bank Urges Better Financial Visibility to Close South African SME Funding Gap

A significant portion of South Africa's Small and Medium Enterprises (SMEs) are financially viable and bankable, but they remain unfunded because lenders cannot easily interpret their financial data.

This is according to Zydah Manuel, Head of SME and Retail Banking at Access Bank South Africa, who urges both financial institutions and business owners to collaborate on improving financial visibility.

The funding gap remains a critical hurdle for economic growth.

According to the OECD’s Financing SMEs and Entrepreneurs 2026 report, SME outstanding loan stock in South Africa grew by 9.6% in 2024, lagging noticeably behind the 12.8% growth recorded for total outstanding business loans.

Manuel points out that the issue is rarely a total lack of capital, but rather a lack of shared, reliable information between entrepreneurs and lenders to properly assess risk.

"Many SMEs are not unfunded because they are inherently unbankable," says Manuel.

"They are unfunded because the evidence of their bankability is incomplete, informal, or difficult for lenders to interpret. We frequently see businesses that are far stronger than their paperwork suggests, with vital market and operational knowledge sitting in the owner’s head rather than in formal management accounts."

Bridging The Information Gap

Access Bank highlights that becoming "bankable" does not require an SME to mimic a large corporate structure.

Instead, it relies on basic, consistent financial visibility.

Essential steps for business owners include:

Separating personal and business finances strictly.

Maintaining up-to-date financial records and tax affairs.

Documenting commercial contracts and tracking debtors.

Clearly understanding the difference between turnover and available cash flow.

These themes were echoed at the recent Cape Town Business Summit, where entrepreneurs emphasised that while capital is vital, sustainable growth requires a supportive ecosystem, financial education, and banking relationships built on a deep understanding of small business realities.

A Call To Action For Funders And Policy Alignment

Manuel stresses that the responsibility does not rest solely on the shoulders of small businesses.

Lenders must also learn to read small enterprises within their specific operational contexts rather than flattening risk into a single, rigid assumption.

Thin files, uneven cash flows, or a lack of collateral can often reflect the seasonal nature of a business or payment delays from larger corporate clients rather than structural instability.

This nuanced approach aligns closely with South Africa's MSMEs and Co-operatives Funding Policy, published in 2025.

The policy directly advocates for a more coordinated funding environment, addressing market fragmentation and improving the quality of data available on smaller enterprises.

Shifting From Procrastination To Preparation

Access Bank advises SMEs to seek funding partnerships long before cash flow pressures become critical.

Waiting until a supplier needs immediate payment or an urgent opportunity arises leaves little time to build lender confidence.

"The strongest credit decisions are not built on optimism; they are built on evidence, context, and a clear view of how a business makes money," Manuel concludes.

"At Access Bank South Africa, our role is to look beyond a narrow view of SME risk, understand the true business behind the application, and facilitate earlier, more realistic funding conversations."

By helping SMEs make their operations easier to understand, and by sharpening how lenders evaluate contextual risk, South Africa can transform viable, ambitious businesses into successfully funded enterprises that drive job creation and economic participation.

About Access Bank South Africa

Access Bank South Africa is a commercial bank committed to supporting economic growth across the region by providing innovative retail, corporate, and SME banking solutions tailored to the evolving realities of the African market.