The Chief Executive of the Ghana EXIM Bank, Sylvester Adinam Mensah, has underscored the importance of SMEs to African economies, emphasising their relevance to economic growth.
According to him, “SMEs are integral to the development of economies. We must therefore champion their growth. Governments do not do SMEs a favour by supporting them to grow. SMEs hold the key to economic growth. Creating the environment and providing support for them to thrive is the way to go. African governments must be deliberate about this.”
Mensah, who was speaking at the ongoing Global SME Finance Forum in Johannesburg, South Africa, is among the global leaders in the SME ecosystem, making a case for more funding and support for SMEs.
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“SMEs make up about 85% of our economies. They are a viable source for jobs and have a palpable impact on economic growth. It is in our interest to remove obstacles in their way and deliberately support them to grow,” the Chief Executive told a packed auditorium of leaders in the SME space.
The forum being organised by the International Finance Corporation (IFC), under the auspices of the G20, is on the theme, “Building resilience and creating growth opportunities.”
The World Bank estimates that 1.2 billion new jobs need to be created for the young people projected to enter the workforce in the developing world by 2050. Meanwhile, only about 420 million new jobs are expected to be created.
This significant gap highlights a major global challenge to provide enough employment for the growing youth population, emphasising the urgent need for strategies that foster inclusive job creation.
SMEs appear to be the most feasible avenue for the creation of most of these jobs essential for social stability and economic growth.
It is against this backdrop that Sylvester Mensah made the call for support for SMEs. According to him, the support does not only mean funding but also other interventions to help SMEs scale over obstacles, expand and create jobs.
“Supporting SMEs does not only have to come through funding. Providing mentorship opportunities and capacity-building ensures their growth and sustainability. When they then get the funding, they are more likely to do better, as their knowledge and capacities have been enhanced,” he observed.
Mensah further noted that another way of encouraging SME growth “is facilitating their acquisition of regulatory licenses and certifications by creating a one-stop shop where SMEs can interface with regulators, meet requirements, and get their Licenses; this ensures efficiency in their operations.”
SSD/SA
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