Access to finance remains one of the biggest hurdles for South Africa’s micro, small, and medium enterprises (MSMEs) — particularly those operating on the fringes of the formal economy. In a strategic move to address this challenge, Experian has partnered with Finfind to promote a data-driven rethink of how the funding ecosystem engages smaller businesses.
The partnership was unveiled at a thought leadership event at Innovation City, where financial, fintech, and development stakeholders explored insights from the newly released Finfind SA MSME Access to Finance Report 2025.
“The report confirmed what many in the sector suspected — there’s a fundamental disconnect between how funding is supplied and what MSMEs actually need,” said Jaco van Jaarsveldt, Chief Strategy and Innovation Officer at Experian.
A Funding System That Misses the Mark
According to the report, most MSMEs seeking finance have annual revenues below R1 million. However, strict qualification criteria, minimum loan thresholds, and outdated credit models lock them out of funding — not due to lack of potential, but because the system isn’t designed for them.
Finfind CEO Darlene Menzies echoed these findings, noting structural barriers such as high documentation demands, reliance on legacy scoring systems, and reluctance to fund industries dominated by micro-enterprises.
Key friction points include:
- High cost of processing small business loans
- Limited regulated MSME credit data
- Avoidance of perceived “volatile” sectors
Experian’s Action Plan
To tackle these gaps, Experian will focus on:
- Boosting MSME funding readiness with targeted tools and support
- Aligning products and credit criteria with small business realities
- Reimagining data frameworks for more inclusive risk assessment
“Collaboration is central to unlocking strategic growth,” Van Jaarsveldt concluded. “Together with Finfind, Innovation City, and the wider financial ecosystem, we aim to create more accessible pathways for MSMEs — enabling them to grow and contribute to South Africa’s economic future.”
