Briefing Paper: Managing risks (more) effectively: Rethinking insurance for MSMEs



Micro, small and medium enterprises (MSMEs) account for 90% of businesses and are a source of more than 50% of employment worldwide. Should they suffer risks, the implications for livelihoods and economic activity are severe. Yet only 2% of MSMEs in Sub-Saharan Africa have insurance and most of that is personal rather than business insurance. Many MSMEs are overlooked by banks and insurers that target large corporate businesses, as well as by alternative financial institutions (like MFIs and SACCOs) or microinsurers, which tend to serve micro-businesses, such as smallholder farmers, often in their personal rather than business capacity. This gives rise to what is known in the MSME literature as the ‘missing middle’.




Gregor Sahler, Adviser, Deutsche Gesellschaft für Internationale Zusammenarbeit (GIZ) GmbH (Germany) &
Jeremy Gray, Resilience Team Lead, Cenfri (South Africa)

Published by: 

  • Microinsurance Network


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