Championing Sustainability for MSMEs in Africa’s Financial Sector

As financial institutions worldwide intensify their focus on sustainability, a recent regional training event highlighted the growing importance of supporting micro, small, and medium enterprises (MSMEs) in their transition toward greener practices.

The discussions, led by the Central Bank of Eswatini, centered on the unique challenges facing MSMEs in Sub-Saharan Africa, particularly their vulnerability to climate-related risks and limited access to green finance solutions. Regulatory bodies are recognizing that their mandate goes beyond safeguarding financial stability—they also play a crucial part in ensuring that MSMEs can adapt to, and benefit from, economic shifts toward sustainability. Key strategies include building regulatory frameworks that promote sustainable business practices and developing specific policies to improve the resilience and competitiveness of MSMEs.

A significant focus was directed toward the need for Inclusive Green Finance (IGF) policies tailored to the realities of local markets, with particular emphasis on addressing the hurdles faced by women-led MSMEs, who constitute a majority in Eswatini but still grapple with barriers to finance and business development. Collaboration, knowledge sharing, and a continued commitment to practical implementation were highlighted as essential for enabling MSMEs to meaningfully contribute to a sustainable future.

This gathering underscored the critical role that regulators and financial sector leaders must play in fostering a greener economy—one that is not only resilient and inclusive, but also empowers all business owners to thrive amid global climate and economic changes.