The vice president, Senator Kashim Shettima, has said that the future economic success of Africa depends on its ability to integrate the informal sector into the formal intrafrican commercial framework, particularly through the African continental free trade area (AFCFTA).
Shettima also demanded an ecosystem of micro, small and medium -sized companies (MSME) to boost the development and prosperity of the African continent.
Stanley Nkwocha, a special senior assistant of the President of Media and Communications, vice president's office, transmitted this in a statement on Monday, in Abuja.
The vice president said that the promise of a better future for Africa does not depend on the skyscrapers that are built in capitals of the nations or the transactions in the stock exchanges, but is found in the reality that the “potential of the informal sector, which represents almost 90 percent” of the workforce of the continent, must be measured.
Senator Shettima, who declared this on Monday when he declared the fourth micro forum of the African Union, small and medium enterprises (MSME) in Abuja, warned that if Africa does not take advantage of the potential in the informal sector so that small businesses grow, the continent “would continue in the same cycle of despair.”
To achieve this, he demanded the integration of the informal economy into the fabric of intra -Frican formal trade, pointing out that this is the reason why small businesses have remained in the heart of the formulation of policies in Nigeria.
“His excellence, distinguished delegates, there can be no African prosperity without a Sims himself ecosystem.
“I am sure that through our collaboration efforts, this forum will mark a turning point. We hope to see our shared aspirations translated into concrete actions that empower our MSME and promote Africa towards a brighter and more sustainable future,” said Vice President Shettima to delegates and other participants in the forum.
Welcoming the delegates and participants to the forum, the vice president transmitted the security message of President Bola Ahmed Tinubu, of the Hospitality of Nigeria and the preparation of the nation of joining other countries in the continent to learn each other, as well as the determination to agree on the direction taken to effectively compete with the rest of the world.
He underlined the crucial role played by the MSME in the development and growth of Africa, observing that beyond the use of millions of Africans, “they are motors of inclusive growth and effective tools for the relief of poverty.
“Only in Nigeria, the MSME contribute to an amazing 48 percent to our national GDP and use more than 84 percent of our workforce. They are a mirror for our future and explain why we are deepening our investments to expand the capacity of this sector,” Senator Shetima said.
Beyond the construction of local infrastructure for business expansion, the vice president implored African countries that strengthened cross -border cooperation since their destinations are united as a continent.
He identified some of the obstacles faced by MSME in Africa to include limited access to affordable finances, describing this particular challenge as a recurring nightmare, as noted that with the African continental free trade area (AFCFTA), there is still hope.
“It costs our continent not only money, it costs us impulse. But we must find hope in the promise of the African Continental Trade area (AFCFTA). That is why I am particularly excited about the theme of this forum:” Build MSME resilient through digital innovation, market access and affordable financing for Africa. “The moment is perfect.
Vice President Shettima acknowledged what he called a remarkable increase in digital adoption in Africa, saying that technology is achieving what politics has to update over the years.
However, he pointed out that for the impulse to be sustained, political leaders must fulfill their duties by “investing in a robust digital infrastructure, joining the digital literacy gap and establishing regulatory frameworks that do not suffocate innovation,” he said.
However, regretting the continuous dependence of the MSME of traditional financial institutions, Shettima expressed the hope that the change will develop, and Fintech companies in Africa now use alternative data to evaluate solvency and extend the microlompares to those previously excluded.
Previously, the deputy director of Cabinet of the President/President of the Host Country Committee, Senator Ibrahim Hassan Hadejia, reiterated Nigeria's commitment to a future where MSME are empowered to prosper.
“The forum means our shared commitment to a prosperous and inclusive future for Africa, a future in which MSMEs have the opportunity not only to survive but to prosper. We meet here today under the issue of Africa we want.
“It is our continental imperative and a road map to unlock the immense potential of the most vital engine of our continent, our MSMS. An investment in our mipyme is a direct investment in a prosperous, inclusive and self -sufficient Africa,” he said.
When establishing the tone for the discussions in the forum, the special advisor of the president of Employment Creation and MSME, Mr. Temmitola Adekunle-Johnson, stressed the importance of the forum, particularly in addressing the challenges faced by the Blood entrepreneurs throughout the continent.
He stressed the need for stakeholders to collaborate and capitalize the potential of the youth and energetic population of Africa to transform the economic landscape of the region.
In his comments, the general director of the Agency for the Development of Small and Medium Business (Smedan), Mr. Charles Odii, applauded the support and commitment of Vice President Shettima and the President of the National Council for MSME to the transformation and growth of the MiPyme sector in Nigeria, highlighting key initiatives supervised by his office since the start of the current administration.
He emphasized the need for Nigerians to always sponsor local products as part of the efforts arranged to support local manufacturers and the MSME.
For his part, the managing director of the Bank of Industry, Dr. Olasupo Olusi, said that the interventions and specific commitments through the bank have helped, over the years, in the growth of knowledge and the adoption of digital tools by MSME, noting that initiatives have affected growth in the sector.
Also speaking, the head of cooperation in the Delegation of the European Union to Nigeria and Ecowas, Mr. Massimo de Luca, declared that access to finance remains a pressing challenge for companies in the region, especially the MSME.
He declined that the European Union has committed around € 1.1 billion in support of the implementation of AFCFTA by the African Union.
“Our EU initiative in support of the African Union in the implementation of the AFCFTA advances around 1,100 million euros. The African continental trade area represents an unprecedented achievement to perform the economic potential and full economic integration.
In addition, the resident representative of the United Nations Program (UNDP) in Nigeria, Mrs. Elsie Attafuah, emphasized the need to allow ecosystems to help MSME move from scalable impact resistance.
She said: “In all our continent, the MSME are the builders of local prosperity. They use, innovate and adapt, but they cannot prosper only in resilience. They need ecosystems that work for them, platforms to market innovation, access to working capital and national and continental markets that recognize their value.”
For his part, the permanent representative of the Sixth Region of the Global African Union (AU6RG) to Nigeria and Ecowas, Ambassador Afolabi Oke, announced the appointment of Mr. Temmitola Adekunle-Johnson, special advisor of the Nigerian president of job creation and mipermes, as special advisor of the 6th region of Au 6
“The sixth region of the Global African Union is dedicated to representing and advocating the African diaspora worldwide. As an extension of the African union, we serve as the 'sixth region', joining people of African descent who lives outside the African continent and friends of Africa,” said Oke.
On the export and industrialization of Nigeria, the managing director of the Nigerian Export-Import Bank (Nexim), Mr. Abubakar Abba Bello, reiterated the bank's commitment to the financing of MSME as a strategic route for the development of the value chain and the success of AFCFTA.
“There is a need for Africa to look in to develop its value chain. We need to facilitate the success of AFCFTA, and this depends on promoting production,” he said.
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