Scottish Africa Business Association Responds to DBT's Call for Evidence on Access to Finance

The Scottish Africa Business Association has today responded to Department for Business and Trade's call for evidence on access to finance.

Scottish SMEs looking to expand into African markets are facing a significant challenge—access to finance. When SABA meets with its members and the wider business community, a recurring issue is the financial burden associated with international trade.

While the opportunities for growth in African markets are substantial, SMEs often struggle to secure the necessary funds to cover costs such as market research, trade delegations, conference participation, regulatory compliance, logistics and trade insurance. Many businesses find it difficult to obtain financing due to the perceived risks of emerging markets, lack of collateral, or stringent lending requirements.

One of the most pressing concerns raised by SABA members is the need for subvention support to help SMEs participate in trade missions and trade shows. These initiatives are essential for establishing international partnerships, gaining market insights and ultimately securing business opportunities. However, without financial assistance, many SMEs—particularly those led by women and underrepresented groups—are unable to take advantage of these opportunities.

Concerns have also been raised about the reduction or cessation of key funding programmes, which could further limit businesses’ ability to access international markets. Without sufficient financial backing, Scotland’s SMEs risk missing out on valuable global trade opportunities.

In particular, women-led businesses face additional barriers when seeking trade finance. Research shows that female entrepreneurs are more likely to be denied loans, offered smaller amounts of funding, or subjected to higher interest rates compared to their male counterparts. To level the playing field, financial institutions and government bodies must consider targeted solutions, such as gender-responsive trade finance products, mentorship programmes, and capacity-building initiatives.

SABA is calling for expanded grant programmes, subsidies and trade finance schemes to ensure SMEs can fully engage in international trade with organisations like ours. As businesses look to grow beyond domestic borders, improving access to finance will be crucial in supporting Scotland’s international trade ambitions.