If the African continent is to overcome poverty and make reasonable development strides, policy makers across the 55 countries or at least the major regional economic power houses should come up with policies that seek to engender and promote small and medium scale enterprises(SME’s). This was the observation of experts who deliberated on Africa’s development at the ongoing Nigeria Economic Summit taking place in Abuja, Nigeria.
The analysts who spoke with this Correspondent pointed out that with SMEs being responsible for an estimated 77% of jobs in Africa and as much as half of GDP in some countries, it should be the engine of economic growth for the continent, thus the need for governments to adopt a more proactive growth strategy to engender the sector and protect those operating within that sector.
Read also : New Partnership To Enhance Investment Readiness For Startups, Smes Initiated
They noted that SMEs are engines of global economic and employment growth as the World Bank estimates that SMEs are responsible for 77% of all jobs in Africa and as much as half of the GDP in some countries. It follows then that SMEs will help fill the gaps in the growing global workforce and generate much-needed employment, particularly in emerging economies. And this development is being helped by the growth of the information communication technology across the continent. Internet penetration is playing a very decisive role in causing disruptions in traditional businesses opening up competition for the SME’s.
This is because global trade is increasingly being driven by smaller, more agile businesses. An entrepreneur with a great idea, for example, can market on social media and implement digital or e-commerce solutions to deliver their products and services to customers anywhere in Africa or the world. And digital disruption is at the heart of this renewed energy sweeping through the African SME landscape — driving product and customer service innovation, and a sense of self-belief that no challenge, whether geographic or infrastructural, is insurmountable.
Read also : How Startups, SMEs In Nigeria Can List on The Nigerian Stock Exchange
Importantly, Africa has the right ingredients for global success. Its population of about 1.2-billion people is projected to double over the next 30 years, making it an exception in a world of declining population growth. Additionally, Africa will soon be the region in the world urbanising the fastest. The continent has also proven to be an innovator and early adopter of all things digital and mobile. Countries across Africa have shown a great appetite for digital and mobile solutions that leapfrog traditional challenges and barriers to entry such as cost and infrastructure.
Experts are of the view that young people are largely the driving force behind this new position of Africa on the global stage. They are predicted to make up 50% of the continent’s population by 2050 — and combined with rapid technological changes and continued digital disruption; it is inevitable that the way people do business and communicate will undergo significant change.
With these two potent weapons; a very high youth population, and fast growing internet penetration, Africa should have the world as its Oyster, says Dr. Abel Adelakun. Dr. Adelakun noted that understanding this evolving environment provides extensive opportunities to change how people, companies and even economies work through the disruptive power of technology, allowing SMEs in particular the opportunity to expand their footprints and act as the drivers of growth and development.
Kelechi Deca
Kelechi Deca has over two decades of media experience, he has traveled to over 77 countries reporting on multilateral development institutions, international business, trade, travels, culture, and diplomacy. He is also a petrol head with in-depth knowledge of automobiles and the auto industry.