Abstract
Small and Medium Enterprises (SMEs) are vital to economic growth, innovation, and job
creation across Sub-Saharan Africa (SSA).Women entrepreneurs are key contributors to this
sector, yet they face persistent barriers to accessing finance, which constrain their business
growth and broader economic participation. This study investigates the role of financial
institutions in closing the financing gap for women-owned SMEs and assesses the effectiveness
of various financing mechanisms, including traditional banking, micro-finance,
fintech innovations, and government-backed credit schemes. Adopting a quantitative
approach, this study utilises structured surveys with women SME owners across multiple
SSA countries. Supplementary secondary data from sources such as the World Bank
and national financial statistics provide additional context. Econometric modelling and
Structural Equation Modelling (SEM) are employed to identify key factors influencing
loan accessibility, such as collateral requirements, interest rates, financial literacy, and the
regulatory environment. Findings reveal that high collateral demands and interest rates remain
major obstacles, particularly for smaller or informal women-led enterprises. Financial
literacy emerges as a critical enabler of access to credit. While fintech solutions and digital
lending platforms show promise in improving access, issues around infrastructure, regulation,
and trust persist. Government-backed schemes also contribute positively but are
hindered by implementation inefficiencies. This study offers practical recommendations,
including the need for harmonised regional credit reporting systems, gender-responsive
policy frameworks, and targeted financial education. Strengthening digital infrastructure
and regulatory support across SSA is essential to build inclusive, sustainable financial
ecosystems that empower women entrepreneurs and drive regional development.