Investing in SMEs in Frontier Markets

SME Ventures Program

Small and medium enterprises (SMEs) are critical to economic development in emerging markets. Often referred to as the “missing middle,” they play a key role in fostering economic growth and job creation. Despite their potential, SMEs in these markets are often constrained by the lack of access to capital and face a mismatch between available funding and their specific financing needs.

To help address this critical funding gap, in 2010 IFC launched the SME Ventures Program. The program invests in private equity funds - often run by first-time or established local investment managers - which focus on SMEs and operate in IDA-eligible countries and fragile and conflict-affected states. In addition to providing capital, the SME Ventures Program provides its fund managers with access to networks, training, and market expertise.

The SME Ventures Program continues to be a thought leader in the SME financing space as the founding host and organizer of the SME Ventures Forum, which every year brings together a global network of fund managers and investors interested in supporting high-growth SMEs in frontier markets. The forum provides a unique platform to analyze market trends, share lessons learned, and explore challenges and opportunities that SMEs face in some of the world’s most challenging markets.