Vice-President Kashim Shettima says financial technology (fintech) firms can play a key role in enhancing access to microloans for most small and medium enterprises (MSMEs).
Shettima spoke on Monday at the opening ceremony of the 4th African Union MSMEs forum, according to a statement by Stanley Nkwocha, his spokesperson.
The vice-president underscored the challenges facing African MSMEs, including limited access to finance.
However, he expressed hope in the African Continental Free Trade Area (AfCFTA), digital adoption, and the potential for policymakers to support innovation through infrastructure investment and regulatory frameworks.
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Shettima said Africa’s future economic success hinges on integrating the informal sector — which accounts for nearly 90 percent of the workforce — into the formal trade framework via the AfCFTA.
He warned that if the continent fails to harness the potential in the informal sector for small businesses to grow, the region would “keep going round the same cycle of despair”.
“…there can be no African prosperity without a strong MSME ecosystem,” Shettima was quoted as saying.
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“This forum is a continental call to action. We owe it to ourselves, to our children, and to generations unborn, to integrate our informal economy into the framework of formal intra-African trade.
“I am confident that through our collaborative efforts, this forum will mark a turning point. We hope to see our shared aspirations translated into concrete actions that empower our MSMEs and propel Africa towards a brighter, more sustainable future.”
The vice-president stressed MSMEs’ potential for inclusive growth in Africa and poverty alleviation, and the need for cross-border cooperation to compete globally.
He said MSMEs contribute 48 percent to Nigeria’s national gross domestic product (GDP) and employ over 84 percent of the workforcec — serving as a reflection of the country’s future.
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‘EU TO SUPPORT AFCFTA WITH €1.1 BILLION’
Massimo De Luca, head of cooperation at the delegation of the European Union to Nigeria and the Economic Community of West African States (ECOWAS), said access to finance remains a major hurdle for MSMEs in West Africa.
He announced the EU’s commitment of €1.1 billion to support the implementation of the AfCFTA.
Ohis part, Ibrahim Hadejia, the deputy chief of staff to the chairman of the host country committee, said the forum reflects a shared commitment to building a prosperous and self-reliant Africa where MSMEs can thrive.
Temitola Adekunle-Johnson, special adviser to President Bola Tinubu on job creation and MSMEs, said the forum presents a platform for collaboration to harness Africa’s youthful population and address entrepreneurial challenges.
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Also speaking, Charles Odii, director-general of the Small and Medium Enterprises Development Agency of Nigeria (SMEDAN), asked Nigerians to prioritise home-grown products to support local MSMEs.
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