Small and medium-sized enterprises (SMEs) are widely recognized as the backbone of Africa’s economic development, playing a crucial role in job creation, innovation, and income generation. Across the continent, SMEs account for approximately 90% of all businesses and provide nearly 80% of employment, highlighting their importance to economic stability and inclusive growth. Despite persistent challenges such as limited access to finance, inadequate infrastructure, and regulatory constraints, SMEs continue to demonstrate remarkable resilience and adaptability. Their performance varies from country to country, influenced by factors such as digital transformation, policy effectiveness, market access, and participation in regional and global value chains.
By 2025, these differences will become more pronounced as some African economies accelerate reforms and actively adopt technology to support small business development. Countries that combine strong private sector dynamism with financial inclusion, innovation ecosystems, and trade integration will see their SME sectors expand at a much faster pace than others. This ranking identifies the 10 African countries with the fastest-growing SME sectors in 2025, based on indicators such as economic activity, private sector vitality, digital adoption, and the overall strength of the business ecosystem.
10. Tunisia
Tunisia’s SMEs continue to experience steady growth, supported by a diversified economic base spanning manufacturing, agriculture, services, and technology. SMEs constitute over 95% of the country’s businesses and play a central role in job creation, particularly among young graduates. The country’s relatively high literacy rate and strong higher education system provide SMEs with a skilled workforce, supporting innovation and productivity gains.
A key driver of SME growth in Tunisia is its strategic proximity to European markets. Tunisian businesses benefit from preferential trade agreements with the European Union, enabling export-oriented SMEs in sectors like automotive parts, textiles, electronics, and processed agricultural products to integrate into European value chains. This access reduces trade barriers and enhances competitiveness, especially for firms meeting EU quality and compliance standards.
This growth is further solidified by government and international development programs. Initiatives focused on enhancing SME competitiveness, digital transformation, and export readiness have improved access to technical assistance and financing. Although credit access remains a challenge, reforms in financial inclusion and entrepreneurship legislation continue to strengthen Tunisia’s SME ecosystem, setting the stage for sustained growth in 2025.
9. Ghana
SMEs are the backbone of Ghana’s economy, with an estimated 92% of registered businesses classified as micro, small, or medium-sized. These enterprises make significant contributions to employment and income generation, particularly in trade, agribusiness, hospitality, and light manufacturing. SMEs are vital to Ghana’s economic resilience, especially amid heightened global economic uncertainty.
Government-led entrepreneurship programs have played a significant role in strengthening the sector. Initiatives focusing on youth entrepreneurship, skills development, and access to finance have broadened participation in SME activities. Financial inclusion efforts, including mobile banking and digital payment systems, have improved SME access to credit and enabled small businesses to operate more efficiently in both urban and rural markets.
Agribusiness and retail remain primary growth areas, but digital services and the creative industries are flourishing. SMEs are increasingly adopting e-commerce platforms, digital accounting tools, and logistics services to scale their operations. With continued policy support and private sector investment, Ghana’s SME sector will remain one of the most dynamic in West Africa in 2025.
8. Ethiopia
The growth of SMEs in Ethiopia is closely tied to its rapidly growing urban population and rising domestic demand. As cities expand and consumer markets grow, SMEs in food processing, construction services, retail, and hospitality have seen sustained growth. The government’s industrialization strategy also encourages SME participation in manufacturing and value-added production.
Digital adoption has become a significant catalyst for SME expansion. Ethiopian startups operating digital marketplaces, recruitment platforms, and service aggregation tools are gaining momentum, helping informal businesses transition to the formal sector. The expansion of mobile payment services has further improved transaction efficiency and market access, particularly benefiting small businesses operating outside major urban centers.
Despite regulatory and infrastructure challenges, Ethiopia’s SME sector continues to benefit from policy reforms aimed at improving the ease of doing business. Investments in industrial parks, logistics, and digital infrastructure are gradually strengthening the SME ecosystem. As financial inclusion deepens and technology adoption spreads, Ethiopia’s SMEs are poised for accelerated growth in the coming years.
7. Rwanda
Rwanda is known for having one of Africa’s most streamlined business environments, and this efficiency translates into steady SME growth. SMEs dominate the private sector and benefit from simplified registration processes, low corruption, and strong regulatory enforcement. These conditions reduce operational friction and encourage entrepreneurship.
Financial inclusion is a key growth driver. The widespread use of mobile payments enables SMEs to transact securely and efficiently, even in rural areas. Digital financial services reduce reliance on cash
