ABUJA — Black-owned and Black-led businesses in Nigeria face a funding gap of $131 billion, the largest of five African countries covered in a new study by British International Investment, the UK's development finance institution, and Sweden's Swedfund.

The report, "Understanding the Investment Gaps in Black-owned and -Led Businesses in sub-Saharan Africa", puts the gap at $45 billion in South Africa, $23 billion in Kenya, $5.7 billion in Senegal and $4.6 billion in Côte d'Ivoire, a combined $209 billion. Across sub-Saharan Africa it estimates the gap at $1.842 trillion, about four times that of other businesses.

Such firms make up between 89 and 99 per cent of small businesses in the five markets but a much smaller share of large companies. They are concentrated in food, trade, services, light manufacturing and agriculture, and find it harder to grow into infrastructure, energy and financial services.

The study blames weak investment readiness, unsuitable financing, talent shortages and limited networks on the business side, and limited local presence, market knowledge and high risk perception on the investor side.