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SME Financing in MENA: A Quantitative and Qualitative Analysis of Multilateral and Bilateral Development Lenders’ Intermediated Lending Practices

  • Benedikt Barthelmess EMAIL logo und Jean Langlois
Veröffentlicht/Copyright: 17. Dezember 2020
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Abstract

This paper documents for the first time the considerable increase of bilateral and multilateral financial institutions’ support to small- and medium-sized enterprises (SMEs) in the Middle East and North Africa (MENA), following the political unrest and civil strife across the region since 2011. Focusing upon intermediated lending, the main financing channel, it assesses the underlying economic logic and implementation of this kind of SME financing. It is found that SMEs’ contribution to economic development is insufficiently well understood and, to some extent, has been misinterpreted, which implies that development banks’ lending operations lack appropriate targeting to achieve economic and social lending objectives. A review of the academic literature on financial exclusion and development finance, moreover, concludes that the lenders’ reliance upon large, often foreign-owned, commercial banks is not likely to achieve the desired developmental impact.


Corresponding author: Benedikt Barthelmess, Non-Resident Fellow, Research Center in Applied Economics for Development, Algiers, Algeria, E-mail:

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Received: 2020-02-28
Accepted: 2020-11-05
Published Online: 2020-12-17

© 2020 Walter de Gruyter GmbH, Berlin/Boston

Heruntergeladen am 17.11.2025 von https://www.degruyterbrill.com/document/doi/10.1515/rmeef-2020-0013/pdf?lang=de
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