From Juliana Taiwo-Obalonye, Abuja
Vice President Kashim Shettima has emphasised the urgent need to integrate Africa鈥檚 vast informal economy into the formal intra-African trade framework to unlock the continent鈥檚 economic potential.
Shettima made the remarks at the 4th African Union Micro, Small and Medium Enterprises (MSMEs) Forum held in Abuja, yesterday, where he highlighted that nearly 90 percent of Africa鈥檚 workforce operates within the informal sector, a reality that cannot be ignored if the continent is to achieve sustainable prosperity.
鈥淭he promise of a better future for Africa does not depend on skyscrapers or stock exchange transactions, but on harnessing the potential of the informal sector,鈥 he said.
According to a statement by his media aide, Stanley Nkwocha, the VP warned that without this integration, Africa risks perpetuating 鈥渢he same cycle of despair鈥 and urged policymakers to prioritise a strong MSMEs ecosystem as the backbone of African economic growth.
鈥淭here can be no African prosperity without a strong MSMEs ecosystem. This forum is a continental call to action,鈥 Shettima declared.
He conveyed President Bola Tinubu鈥檚 message of hospitality and Nigeria鈥檚 readiness to collaborate with other African nations to boost MSMEs. He noted the critical role MSMEs play in Nigeria鈥檚 economy, contributing 48 percent to the national GDP and employing over 84 percent of the workforce.
鈥淥ur investments are deepening to expand the capacity of small businesses because they are engines of inclusive growth and effective tools for poverty alleviation,鈥 he said.
Addressing the persistent challenges faced by MSMEs, such as limited access to affordable finance, Shettima described this as a 鈥渞ecurring nightmare鈥 but expressed optimism about the African Continental Free Trade Area (AfCFTA). 鈥淚t costs us not just money, but momentum. Yet, there is hope in AfCFTA鈥檚 promise,鈥 he remarked.
The forum鈥檚 theme: 鈥淏uilding Resilient MSMEs through Digital Innovation, Market Access and Affordable Financing for Africa,鈥 resonated with the Vice President鈥檚 call for increased digital adoption and supportive policies.
鈥淭echnology is achieving what politics has struggled to do for years,鈥 he said, urging investments in digital infrastructure and regulatory frameworks that foster innovation.
He also highlighted the rise of fintech firms, using alternative data to extend credit to previously excluded entrepreneurs, signalling a positive shift in financial inclusion.
Shettima concluded: 鈥淭hrough our collaborative efforts, we can propel Africa towards a brighter, more sustainable future.鈥
Deputy Chief of Staff to the President and Chairman of the Host Country Committee, Ibrahim Hadejia, reiterated Nigeria鈥檚 dedication to empowering MSMEs. 鈥淎n investment in our MSMEs is a direct investment in a prosperous, inclusive and self-reliant Africa,鈥 he said.
Special Adviser to the President on Job Creation and MSMEs, Temitola Adekunle-Johnson, stressed the importance of continental collaboration to leverage Africa鈥檚 youthful population for economic transformation.
European Union鈥檚 Head of Cooperation to Nigeria and ECOWAS, Massimo De Luca, announced a 鈧1.1 billion EU commitment to support AfCFTA implementation, emphasising the EU鈥檚 partnership for sustainable industrial development.
UNDP Resident Representative in Nigeria, Elsie Attafuah, underscored the need for enabling ecosystems that allow MSMEs to scale beyond resilience. 鈥淭hey need platforms to commercialize innovation and access to working capital and markets that recognize their value,鈥 she said.
Permanent Representative of the African Union Sixth Region Global to Nigeria and ECOWAS, Afolabi Oke, announced the appointment of Adekunle-Johnson as Special Adviser to the AU Sixth Region on Job Creation and MSME Development, reinforcing the diaspora鈥檚 role in Africa鈥檚 economic progress.
Meanwhile, Managing Director of the Nigerian Export-Import Bank (NEXIM), Abubakar Bello, highlighted the bank鈥檚 commitment to MSMEs financing as vital for value chain development and AfCFTA success. 鈥淎frica must look inward to develop its value chain and boost production,鈥 he said.