Sub‑Saharan Africa faces $209bn funding gap for Black‑owned businesses, report says

Funding gap uncovered A new analysis released by the United Kingdom’s development finance institution, British International Investment (BII), together with Swedish investor Swedfund, estimates that Black‑owned and -led businesses in five sub‑Saharan African countries face a combined financing shortfall of about $209 bn.

The research, titled *Understanding the Investment Gaps in Black‑Owned and -Led Businesses in Sub‑Saharan Africa*, blends quantitative market data with consultations of industry stakeholders to map out where capital is missing and why.

Country‑by‑country figures The report breaks the total gap down by country:

* Nigeria – $131 bn * South Africa – $45 bn * Kenya – $23 bn * Côte d’Ivoire – $4.6 bn * Senegal – $5.7 bn

Nigeria alone accounts for roughly 63 % of the total shortfall, making it the country with the most urgent need for additional investment.

Representation of Black‑owned firms Across the five markets, Black‑owned enterprises comprise between 89 % and 99 % of all small businesses. However, their share falls as firms grow larger: in Kenya they represent 40 % of medium‑to‑large companies, while in South Africa the figure drops to 35 %. This trend suggests that scaling up is a particular challenge for Black‑led firms.

The BOLD initiative The study is part of BII’s broader *Black Ownership and Leadership for Development* (BOLD) programme, launched in 2022 to boost the flow of capital to Black‑owned businesses throughout sub‑Saharan Africa. By highlighting the magnitude of the funding gap, the research aims to inform investors, fund managers and development finance institutions about the scale of opportunity and the barriers that must be addressed.

Implications for investors With a gap four times larger than that faced by non‑Black‑owned firms, the findings point to a significant untapped market. Development finance institutions and impact investors may look to the report’s data to identify where their capital could have the greatest multiplier effect on economic growth and job creation.

Next steps While the report does not prescribe specific policy measures, it underscores the need for targeted financing mechanisms, improved access to credit, and support for business scaling. Stakeholders across the private and public sectors will need to collaborate to close the gap and unlock the potential of Black‑owned enterprises.

The findings were reported by *Punch* and *Nairametrics* on 15‑16 October 2026, drawing on the same source documents from BII and Swedfund.