All concerned actors need to strengthen their support to solve the challenges that Small and Medium Enterprises (SMEs) in African countries are facing, All Africa Association for Small and Medium Enterprises (AAASME) President Harry said.
All Africa Association for Small and Medium Enterprises (AAASME) President, Innocent Iyalla Harry told ENA that even if SMEs in Africa provide 70 percent of the jobs and significantly contribute to the economy they have challenges.
“SMEs contribute to employment, they provide at least 70 percent of employment in the whole of Africa and they are the productive sector of the economy.”
According to him, the enterprises are however facing challenges, including financial constraints and lack of capacity, as they are not well organized.
“SMEs have problems with the financing because they are not well structured and all do not want to lend money to those who are not structured,” the president noted.
So for SMEs, Harry said that the association is trying to get people to understand that they have to keep their houses in order, they have to keep a good book of account, and they have to be able to defend what they are doing with the loan they get.
The president revealed that employments are not being created of late and the association has to go back to the value chain to make sure that people are actively engaged in doing what they need to do.
Thus, the association is working on assessing the value chain to scale up employment opportunities and improve financial access.
“Everyone believes that the governments should solve all the problems, but no; we as individuals have to do the best and get all countries of Africa to work together.”
For the SMEs to get the support they need and participate in the Africa Continental Free Trade Area (AfCFTA), the governments of the African countries, the SMEs themselves, and other concerned actors should do their part, Harry underlined.
The SMEs and other businesses in Africa are also expected to face challenges related to tariff issues on the implementation of the AfCFTA, and the governments of the African countries should make uniform, balanced, and harmonized tariff structure.
“The AfCFTA tariff structure is supposed to be uniform and balanced” to smoothly move goods across the borders of the African countries and facilitate intra-African trade in the continent.
The president added that “the governments of the African countries ought to harmonize the tariff in such a way that it becomes good for every participating country. That is the way forward.”
Representing about 90 percent of the businesses, SMEs are crucial in creating jobs and driving economic development in Africa, creating at least 70 percent employment opportunities and contributing 40 percent of GDP.
The Africa Continental Free Trade Area (AfCFTA) agreement is expected to be beneficial to the SMEs in Africa, which represent about 90 percent of the businesses, create 70 percent jobs and contribute 40 percent of GDP.
Source: Ethiopian News Agency