Browsing: SMEs in Africa

• Small scale firms in Africa urged to embrace technology, research, and development to power their growth at scale.
• African MSMEs have been challenged to tap opportunities presented by the African Continental Free Trade Area (AfCFTA) Agreement.
• Agriculture, manufacturing, ICT, minerals, and creative industries highlighted as sectors that have huge potential for MSMEs’ growth.

The African Union (AU) has called upon startups and micro, small, and medium-sized enterprises (MSMEs) across Africa to harness the power of innovation for their growth and sustainability. This appeal has been made by Albert Muchanga, the AU Commissioner for Economic Development, Trade, Tourism, Industry, and Minerals during the third African Union Micro, Small, and Medium-Sized Enterprises Forum, which is taking place between September 9 to 13 in Windhoek, Namibia, and virtually.

This forum, which is arguably one of Africa’s largest gathering of MSMEs, focuses on the theme: “Fostering Financial Empowerment and Educational Innovation for African …

• 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 …

• IFC and Equity Banque Commerciale du Congo (EquityBCDC), a subsidiary of Equity Group, has partnered to increase access to finance for small and medium-sized enterprises (SMEs) in the DRC and to promote economic diversification in the country.
• Under the partnership, IFC will support the expansion of EquityBCDC’s SME-lending operations through a $12.5 million risk sharing facility (RSF).
• Through the partnership, EquityBCDC aims to provide an additional 1,700 SME loans within the DRC and expand its SME portfolio from $250 million in 2021 to $631 million by 2026.

IFC and Equity Banque Commerciale du Congo (EquityBCDC), a subsidiary of Equity Group, has partnered to increase access to finance for small and medium-sized enterprises (SMEs) in the DRC and to promote economic diversification in the country.

Under the partnership, IFC will support the expansion of EquityBCDC’s SME-lending operations through a $12.5 million risk sharing facility (RSF).  

 IFC is also providing advisory services …

• New data now shows that over 40 per cent of Small and Medium Enterprises (SMEs) in Africa are earning more money than before the pandemic
• Mastercard indicates that 46 per cent of SMEs in Africa, Eastern Europe, and the Middle East have surpassed pre-pandemic levels
• Online business and international sales are key drivers, with seven in ten (71 per cent) recording above-global-average growth in online sales, while 77 per cent are planning to do more business internationally

Over 40 per cent of Small and Medium Enterprises (SMEs) in Africa are earning more money than before the pandemic.

New data by Mastercard indicates that 46 per cent of SMEs in Africa, Eastern Europe, and the Middle East have surpassed pre-pandemic levels.

According to the Borderless Payments Report, online business and international sales are key drivers, with seven in ten (71 per cent) recording above-global-average growth in online sales, while 77 per …

• Google has unveiled the Google Hustle Academy to train SMEs and entrepreneurs across Africa 
• The Academy is a practical educational platform with interactive activities and instruction by subject experts
• It also provides access to a global network of mentors and alumni

Business training

Google has announced that 5,000 small and medium enterprises (SMEs) and entrepreneurs in Kenya, Nigeria, and South Africa will receive free training to help their business thrive via the newly launched Hustle Academy.

Google Hustle Academy is a Bootcamp-style training program designed to help entrepreneurs and small businesses owners position their businesses for investment opportunities and build viable business models for the future.

The Hustle Academy is a practical educational program with interactive activities and instruction by subject experts. It also provides access to a global network of mentors and alumni.

Business owners will undergo five days of hands-on training and receive 3,000 hours of training on …

Kenya is commonly considered to be East Africa’s financial hub. Its economic growth has increased steadily in the last decade due to significant political, structural and economic reforms. The SME sector stands out as the key driver of Kenya Vision 2030 which seeks to transform the country into a newly industrialized middle income country by 2030. SMEs are crucial in encouraging industrialization and helping to eradicate poverty by creating employment and raising income levels.

Social and Economic Benefits

SMEs complement large firms as subsidiary units; because they are more flexible they can effectively meet the needs of the market. They have a facilitative role in entrepreneurial activities across the country in both urban and rural settings, thus contributing immensely towards the socio-economic development and transformation of the country. SMEs are can ensure the achievement of sustainable development goals (SDGs), promotion of inclusive economic growth and sustainable industrialisation and fostering as …

A report released at the African Green Revolution Forum in Accra finds that millions of small- and medium-sized enterprises (SMEs) rarely are dependent on big multinationals for their raw materials but directly rely upon millions more smallholder farmers across Sub-Saharan Africa.

The report finds that, overall, only about 20 percent of the volume of food consumed in Africa fits the conventional notion of subsistence agriculture—food consumed directly by the farming households that grow it.

“All this represents a profound turnaround from mere decades ago, ” said Dr. Thomas Reardon of Michigan State University, a lead author of the report. “There has been a ‘Quiet Revolution’ in agrifood private sector value chains linking small farmers to burgeoning urban markets and growing towns in Africa. This has spurred farmers’ participation in food and farm input markets.”

SMEs provide a range of services, from transport and logistics to the sale of inputs such …