The SGB Sector in 2017

Donor Funding: South Africa

Donor funding for SME-related activities remained a small fraction of donor funding in South Africa

In 2016, donor disbursements for SME-related projects was at its highest level since 2011, at US $11 million, but remained less than .5 percent of total donor funding for South Africa. Funding for SME-related projects in South Africa has never surpassed 2 percent of total funding.

Unlike other regions, where SME-funding is typically driven by a small number of very large loans, in South Africa it is rare that a disbursement is larger than US $1 million. In 2016, the largest disbursement for a single project was US $1.9 million.

  • SME-related
  • Total Donor Funding
  • %

Flanders Official Regional Ministries led the way in SME-related funding for South Africa

In 2016, the Flemish development cooperation Flanders Official Regional Ministries contributed US $4.6 million to SME-related projects in South Africa, a 100 percent allocation of their SME-related disbursements to the region. This represented 44 percent of all SME funding focused on South Africa in 2016. This is not entirely surprising, because Flanders only supports one sector per partner country, and the focus for South Africa is SME development.

While the Commission of European Communities and the Bundesministerium für Wirtschaftliche Zusammenarbeit und Entwicklung (BWZ), Germany’s Federal Ministry for Economic Cooperation and Development, contributed 22 percent and 11 percent respectively to SME-related funding in South Africa in 2016, this funding was less than 2 percent of their global disbursements to SME-related activities.

Organization’s SME-related Disbursements allocated to South Africa
Percentage of Organization’s SME-related Disbursements allocated to South Africa