In the context of celebrating the MSME-Day, the Industry, Innovation and Mining Division of the Department for Economic Development, Trade, Industry and Mining (ETIM) of the African Union Commission (AUC) organized a virtual webinar on supporting the implementation of the African Union Small Medium Enterprise (SME) Strategy through domestication and advocacy.
The webinar organized under the theme “A continental strategy to unlock the potential of African SMEs” brought together participants from multi-stakeholder that includes policymakers, development partners, representatives from the private sector, financial institutions, industry and trade think tanks, and business support organizations, Regional Economic Communities (RECs) and representatives from African Micro-, Small, and Medium-sized Enterprises (MSMEs).
The webinar aimed at reviewing the successful perspectives on the implementation of the AU SMEs Strategy that is important for RECs, Member States, and Africa’s private sectors to improve the continental business environment, increasing business formation, supporting formalization of growth-oriented informal enterprises and startups, increasing SMEs, MSMEs and entrepreneurs’ participation in regional and global value chains and promoting innovative financing.
During the webinar opening presided over by H.E. Albert Muchanga, Commissioner for Economic Development, Trade, Industry, and Mining (ETIM), he noted that SMEs and MSMEs’ contribution to inclusive development and he added that they are effective tools in poverty reduction in Africa. With that, the second Specialized Technical Committee on Trade, Industry, and Mining (STC-TIM) approved the AU SME Strategy and consequently adopted by the Heads of State and Government during the 32nd Ordinary Session in February 2019.
Commissioner Muchanga, further indicated that informality is a key attribute in African SMEs, and the task for governments is to mainstream these enterprises into their respective formal sectors so that these firms become more productive and contribute to domestic taxes. He outlined that the AU Commission is working with partners to provide technical assistant in terms of training and ease of access to finance that is always hinders the emergence and growth of the SMEs in the continent.
Mrs Ron Osman, the Acting Head of the Industry, Innovation and Mining, presented a brief overview of the African Union SMEs Strategy which enshrined a vision to develop competitive, diversified, and sustainable economies underpinned by dynamic SME/Is and entrepreneurship that generate employment, reduce poverty and foster social inclusion across the continent. She further shed light on the seven major pillars of AU SMEs Strategy which are enabling environment for business, facilitation of innovation and technology, access to finance, regional markets, institutional capacity, knowledge management, and promoting of inclusive entrepreneurship development.
During the panel discussion compromised of SMEs partners and experts recommended that a joint effort is a basic step towards domestication and implementation of the AU SME Strategy to leverage on African economies’ growth to create employment, and ensuring the promotion of SMEs led by women and young people. Looking into aspects in regards to the political wills of member states, the impact of COVID19 pandemic, sectors inclusivity, and integration of Intellectual Property components, standardizations, and quality assurance.
Mr. Tomi Davies, President of the African Business Angel Network, a panelist who reflected on the modalities on how the strategy can unlock the opportunities through tech education and inclusion of women in the sectors. He further urged the policymakers to support the African entrepreneurs to build a better Africa through SMEs.
Further, Mr. Alex Ariho, the Chief Executive Officer of the African Agribusiness Incubation Network (AAIN), congratulated the African Union in developing a robust strategy for the SMEs which is important for the continent in the current economic impact of the COVID19 pandemic.
He pledged, AAIN commitment in working with the Commission in advancing access to finance mainly to startups, inputs and outputs in regional markets, and enriching the SMEs’ experience through academic research institutions.
On the business accreditation, quality assurance, and standardization of the African SMEs, Dr. Hermogene Nsengimana Secretary-General of the African Organisation for Standardization (ARSO), emphasized the harmonization of the standards and conformity of SMEs in the continent, and that will enable them to trade under the African Continental Free Trade Area (AfCFTA) competitively across the value chains.
The role of the private sector was viewed as critical in trademarking and property rights, as explained by Mr. Guy Pessach, the Director of the SMEs and Entrepreneurship Support Division (SESD) of the World Intellectual Property Organisation (WIPO). Mr. Pessach indicated the importance of digitialzation linked to the industrial revolution that leverage identifying and utilizing the Intellectual Property (IP) System in SMEs development in Africa.
Accessibility to the SME services through the private sector in the quest for integration is fundamental in advancing African economies and answering the question of unemployment through job creations, stated by Mr. Aminou Akadiri, the CEO of the Federation of West African Chambers of Commerce (FEWACCI). He further calls for African governments to enact policies and legal frameworks that promote local content and SMEs’ survival in pandemics.
Dr. Ebiekure Jasper, the Secretary-General of All Africa Association for Small and Medium Enterprise (AAASME) commended the work of the Union in mainstreaming the SMEs Strategy in its work and urge for the domestication of the main pillars of the Strategy at the national and local level.
The Common Market for Eastern and Southern Africa (COMESA) one of the African Union Regional Economic Community (REC) is supporting the SMEs’ industrial competitiveness, domesticating the key pillars of the AU SME Strategy where the bloc derives the implementation of Regional SMEs Strategy among its member states. Mr. Innocent Makwiramiti, Senior Private Sector Development Officer in COMESA further, indicated that they are working on a joint industrialization comparative program that will enable the SMEs to have access to markets and contribute to value chains.
The Federal Republic of Nigeria recognizes the importance of SMEs in national and regional economic development and it adapted the AU SMEs Strategy from the validation stage because it offers opportunities to create jobs for young people and women.
Mr.Barnabas Jatau, the Director of Industry, Trade and Investment further retreats on the support programs for women in the textile industry and urgent technical support for the Start-Ups to thrive for the long term in providing goods and services.
Mrs. MBOUA née Lea KOYASSOUM, Minister of Trade and Industry of the Central African Republic express her government’s readiness to work with the Commission in the implementation of the AU SME Strategy.
In his closing remarks Mr. Hussein Hassan, the Acting Director of Industry, Mining, and Entrepreneurship stated that today’s webinar is a testimony that Africa has the potential to unlock the vast opportunities for inclusive and sustainable growth and development of the SMEs and their great contribution to the success of the African Continental Free Trade Area (AfCFTA). He indicated that the Department is working closely with E-Trade Group in organizing a pavilion to Africa’s Youth Start-up at the Second Edition of the Intra Africa Trade Fair 2021.
He further, indicated that SMEs are the major growing force behind the fastest growing economies of many industrialized countries, in terms of contribution to the national GDP and creation of employment, reducing poverty, and increasing welfare.
Finally, the Acting Director informed the participants that the AU Commission is working closely with partners and member states on the development of the Enterprise Africa Network (EAN) with the overall goal to provide African business start-ups and SMEs with trade information, Business Development Services (BDS) through mentoring and coaching, and access to finance for their growth and development journey.
Mr. Hassan finally commended the role of partners and other stakeholders on their continuous commitment in supporting the Department of Economic Development, Trade, Industry, and Mining to contribute to the sustainable structural transformation of the continent through Industrialization enshrined in Agenda 2063. (End)