SMEs contribute so much to Africa's economy, yet remains highly fragmented, disjointed, and marginalized, says Abasiofiok Ibekwe Co-convener & Project Lead Africa SME Assembly.
African Small and Medium Size Enterprises, SMEs are bracing up for a maiden assembly in Lagos, Nigeria to discuss common issues and fine tune strategies to better serve the continent.
“The Assembly is a Lifetime project for us as it reflects our passion, values and aspirations to disrupt the status quo of a sector that contributes so much to Africa's economy, yet remains highly fragmented, disjointed ,and marginalized,” says Abasiofiok Ibekwe Co-convener & Project Lead Africa SME Assembly.
Can you shed light on the Africa SME event that you are planning?
Abasiofiok Ibekwe: The Africa SME Assembly aims to empower the continent's economy by strengthening, digitizing, and accelerating the growth of the highly informal and underserved SME ecosystem. It's a Pan-African event, with the first edition set to be hosted in J.F. Ade. Ajayi Auditorium (Main Auditorium), UNILAG, Akoka, Yaba, Lagos, Nigeria, and subsequent editions in other leading economies on the continent. The event will convene over 5,000 key stakeholders, including investors, financiers, policymakers, ecosystem builders, and SMEs, with the objective of collectively envisioning, revitalizing, and advancing the SME sector across the African continent.
Why such an event at this point?
Abasiofiok Ibekwe: Micro-, small, and medium-sized enterprises represent around 90 percent of African businesses, contribute to more than 60 percent of employment, and make up half of the gross domestic product (GDP). Despite their significant contribution, Africa's SME sector has faced disproportionate challenges hindering its growth. The Africa SME Assembly is convened at this point to address these challenges, spur growth, and create an enabling ecosystem for small businesses in Africa.
Can you shed light on the situation and the importance of SMEs in Africa today?
Abasiofiok Ibekwe: No economy can grow beyond the strength of her SME sector.
It's evident in developed economies like America, Europe, and Asia.
After spending years studying these leading global markets, we noticed the importance of SMEs in every economy and why utmost attention must be paid to this sector. However, here in Africa SMEs face various challenges hindering their growth, including limited access to finance, inadequate infrastructure, and regulatory barriers. Addressing these challenges is crucial for unleashing the full potential of SMEs and driving economic growth and development across Africa. To revamp Africa's economy, the continent's SME sector must be on a state of emergency. This is the idea behind the assembly.
On the Assembly itself, besides the SMEs, who are some of the government or institutional actors that you expect at the event?
Abasiofiok Ibekwe: Besides SMEs, the Africa SME Assembly expects the participation of government agencies and institutional actors such as SMEDAN, Representative from Federal Governments, Investors, Develop Financial institutions, Government agencies, Commercial banks, Financiers, Policy makers, Tech Companies building tools for SMEs, Leading Global and continental corporations, Foreign Delegates, Trade Facilitators etc. Additionally, we'll be Advocating for Free Continental Trade agreement as proposed by AFCFTA.
For SMEs that are interested, what will it take for them to be part of the Assembly?
Abasiofiok Ibekwe: SMEs interested in participating in the Africa SME Assembly can register through the official channels provided by the organizers. Participation is completely free for all SMEs although some big corporations will have to pay for exhibition booths to enable them to promote their business.
This is the first time such an Assembly is taking place, is this going to be a one-time thing, or do you plan for it to be an ongoing thing?
Abasiofiok Ibekwe: The Africa SME Assembly is envisioned as an ongoing initiative, with subsequent editions planned to be hosted in other leading economies across the continent. The goal is to create a sustainable platform for fostering collaboration, innovation, and growth within the SME ecosystem in Africa.
Based on the Nigerian experience, what are some of the challenges that SMEs are facing?
Abasiofiok Ibekwe:In Nigeria, SMEs face various challenges including limited access to finance, inadequate infrastructure, regulatory complexities, lack of skilled labor, and market access barriers. Addressing these challenges is crucial for unlocking the full potential of SMEs and driving economic growth in the country.
Any last pitch to SMEs out there across Africa on the importance of joining the Assembly in Nigeria, what tangible benefits could they get from that?
Abasiofiok Ibekwe: Joining the Africa SME Assembly in Nigeria presents SMEs with a unique opportunity to network with key stakeholders, access funding and investment opportunities, gain insights into innovative solutions and technologies, participate in policy discussions, and contribute to shaping the future of the SME ecosystem in Africa. By participating in the Assembly, SMEs can position themselves for growth, expansion, and success in the dynamic African market.
