In an insightful discussion with Chris Chijiutomi, Managing Director and Head of Africa at British International Investment (BII), the significance of small and medium-sized enterprises (SMEs) in Africa’s economic landscape was highlighted. Chijiutomi stated, “We recognise that SMEs in Africa are critical to driving economic growth, creating jobs, fuelling innovation, and supporting delivery of the SDGs.” BII has been a steadfast partner to these businesses, offering diverse support mechanisms for decades.
Chijiutomi emphasized that access to finance is a major hurdle for SMEs. “Our investments in private equity funds such as the Africa Rivers Fund and Takura provide smaller investments to SMEs and entrepreneurs of early-stage businesses with strong growth and impact potential.” The organization also directs funding to banks, exemplified by their recent collaborations with Zanaco in Zambia and COFINA in Côte d’Ivoire, aimed at facilitating loans to SMEs.
Beyond direct financial support, BII enhances trade finance options via several pan-African banks, including a notable $100 million risk-sharing facility with Citi Bank.
This funding initiative aims to uplift local businesses within frontier and developing economies. Recognizing the pressing need for improved access to finance, BII established Growth Investment Partners (GIP), a platform designed to invest in SMEs at scale across key markets, beginning with GIP Ghana last year.
Chijiutomi elaborated, “Our partnerships provide more than capital. We offer innovative technical assistance, training, and access to experts, through initiatives such as the Ghana Investment Support Programme, to support SMEs in becoming investment-ready.”
Regarding the risks present in the African market, he noted that BII has been strategically investing in African businesses for over 75 years, allowing them to adapt to changes effectively. “BII’s expansive footprint across Africa enhances our ability to closely monitor policy shifts, regulatory changes, and macroeconomic trends across our portfolio companies’ operating landscape.”
Chijiutomi acknowledged ongoing challenges, including rising costs of capital globally and infrastructural deficits in Africa, which impede business operations. “On the macroeconomic front, Africa faces various external challenges. The good news is that sub-Saharan Africa’s economy is returning to stability after a few challenging years.”
Collaboration remains essential for addressing these hurdles, leading BII to strengthen ties with multilateral development banks and other institutions. “Political risk remains in sharp focus, but by leveraging the deep local partnerships, we can better manage risks that present themselves.”
Looking ahead to AFSIC 2024, Chijiutomi expressed enthusiasm: “Our objective remains constant: to demonstrate our commitment to growing African businesses and supporting economies through our investments, expertise, and support as a patient capital investor.”
