The article discusses how financial constraints have hindered private sector development in Africa, leading to poor long-term growth. The lack of medium-term financing options, underdeveloped capital markets, and weak financial intermediation have limited private businesses' ability to invest. Governments and donors have focused on addressing these financial constraints, as banks have been reluctant to lend to small enterprises. Reforms in the financial sector have been implemented to shift investible funds back to the market and improve the commercial viability of financial institutions.