Browsing: Micro Small and Medium-sized Entreprises

African continent
The African Continental Free Trade Area (AfCTA) is billed to transform the face of trade on the African continent. If its implementation becomes a success, AfCTA will bring a new lease of life for African economies. Its implementation initially delayed by the onset of the Covid-19 pandemic is set for the beginning of 2021. Given that small business enterprises play key roles in most economies across the continent, what does the advent of the trade agreement mean for SMEs in Africa?

READ ALSO: Why the African free trade area could be the game-changer for the continent& economies

Why Are Micro And Small Business A Subject Of Concern?

According to the World Bank, SMEs make up 90% of businesses in the world and cover more than 50% of the world’s employment. Formal small businesses contribute significantly to GDP. This contribution to GDP is significantly amplified when the informal sector is taken

Lack of standards specifications, poor production methods, poor finish, reduced lifespan and sub- standard issues have been cited as factors hindering the export growth of the products manufactured by the Micro Small and Medium-sized Entreprises (MSMEs) in the region.

This was said during the inaugural regional consultative forum on  MSMEs held at East African Business Council Secretariat in Arusha, Tanzania.

MSMEs are the most dynamic and fastest-growing sectors in EAC, contributing to approximately 85 per cent of employment and approximately 25 per cent to the GDP of the EAC Partner States.

This was emphasized by Mr. Richard Muteti, CEO Confederation of Micro and Small Enterprises Organisation East Africa (CMSEOEA).

Also Read: e-Commerce deal to link Kenyan SMEs to markets

“Despite the importance of the MSMEs to the economy, there isn’t a tailor-made policy at EAC level focusing on the promotion of MSMEs,” said the East African Business Council (EABC) Mr …