Browsing: Small and Medium Enterprises (SMES)

  • Small and medium enterprises have become vital drivers of economic growth in African countries.
  • According to the African Development Bank Group, SMEs in Africa represent around 90 per cent of all businesses and contribute up to 33 per cent of Africa’s Gross Domestic Product (GDP).
  • Access to capital is one of the biggest obstacles small and medium enterprises face in Africa.

Small and medium enterprises (SMEs) in Africa play a vital role in fostering sustainable development. With 90 per cent of all global businesses falling under the MSME category, these enterprises create employment, foster innovation, and contribute to gross domestic product (GDP) growth.

In recent years, small and medium enterprises have become vital drivers of economic growth in African countries. As the continent undergoes rapid development, these enterprises foster innovation, create jobs, and contribute to economic growth.

Small and medium enterprises form the bedrock of African economies, representing various

Rise In Consumer Expenditure
  • The increasing food prices have majorly occasioned the rise in consumer expenditure. 
  • In the review period, 50 per cent of the Kenyans polled indicated static income levels over the last year
  • 53 per cent of Kenyans polled allocated less than 10 per cent of their income to travel and leisure expenditures.

The slight drop in inflation in Kenya has failed to soften the impact of Increased consumer spending after posting a 42 per cent rise in spending in the past six months. This is after a new survey showed that the country posted a six per cent rise in Kenyan expenditures compared to the preceding three months, which ended December 2023.

According to the latest spending index from ICEA LION Group, Kenyans’ spending escalated by 6 per cent from January to March this year. However, this growth was more subdued than the previous quarter, which witnessed a 36 per

AfCFTA supports women in trade.

AfCFTA is reshaping African markets; deepening economic integration in accordance with the Pan African Vision of ‘An integrated, Prosperous and Peaceful Africa,’ as enshrined in Agenda 2063. The agreement established a single continental market for goods and services, making for the largest and most ambitious trade bloc in the world, after the WTO. This has created a new market of 1.3 billion consumers across Africa, accounting for a combined GDP in excess of US$3.4 trillion in 55 countries.  

According to the World Bank, AfCFTA has the potential to eradicate extreme poverty in the lives of 30 million Africans, and boost the incomes of 68 million of them, that live below the poverty line. Moreover, in the long term the continent is set to immensely reap more benefits out of the Agreement such as the diversification of Intra African trade, elimination of barriers and tariffs, job creation, increase in wages for …

Training for Ugandan financial institutions and SMEs

The International Finance Corporation (IFC) and the Uganda Bankers Association (UBA) partnered to train financial institutions and small and medium-sized enterprises (SMEs) in Uganda.

The International Finance Corporation (IFC) noted that the training for 32 financial institutions will equip them with knowledge, tools, and techniques to help them meet the current economic challenges.

About 500 SMEs will receive the six weeks online training which will help them navigate the challenges of lockdowns and reduced trade.

Also Read: Kenyan headquartered DPO Group to be acquired by Dubai based Network International for $288 Million

To help banks assess the impact of COVID-19 on their portfolio and support their risk mitigation, the webinar training for financial institutions include stress testing topics.

The SME webinars will cover topics such as accessing finance during crises, communicating with stakeholders, adjusting business plans, digital sales, marketing and promotion.

Early this year in March, IFC launched an $8 …

Uganda focuses on reviving SMEs in national budget

Uganda has set aside money in its $43 trillion budget for the 2020/2021 financial year to help revive small and medium businesses that have been affected by the COVID-19 pandemic.

Uganda’s government allocated $88.4 billion as credit through Saccos and microfinance to help small and medium businesses.

Uganda’s minister of finance Matia Kasaija, said since the sector accounts for 85 per cent of private employment, the credit was significant.

Uganda Development Bank was also given $98 billion to enable businesses mostly large scale private firms and manufacturers to borrow at low-interest rates.

The government Uganda also said they would urgently pay arrears it owed the private sector through returns from Value Added Tax (VAT).

“To address emergencies on liquidity and other financial constraints suffered by government suppliers, the government will pay arrears of $633.4 billion commencing July 2020. Priority will be small and medium enterprises,” said Mr Kasaija.

Also Read: