The G20 Global Partnership for Financial Inclusion (GPFI) Action Plan for Micro, Small, and Medium enterprises (MSME) Financing is a call to action to intensify the efforts of G20 and willing non-G20 countries to close the financing gap for MSMEs.
MSMEs represent a significant share of economic activity and capture a large share of employment. However, MSMEs continue to have difficulties accessing finance. The credit gap for emerging market and developing economies (EMDEs) was estimated at $5.7 trillion in 2019, with the gap for Women-owned MSMEs representing 34% of this amount. Addressing this gap will not only support MSME growth and resilience but also boost national economies and enhance countries’ abilities to meet the sustainable development goals.
The Action Plan identifies key enablers of MSME financing, such as fintech, and calls on governments to implement a robust enabling environment for MSME financing that can address the ongoing challenges frictions, as well as recommendations to improve the effectiveness of financial interventions and mobilization of private financings.