Small and Medium-Sized enterprises (SMEs) as Key drivers of Climate Adaptation and Innovation in Africa

On June 27th, 2024, YouthADAPT hosted a transformative webinar, spotlighting Small and Medium-sized Enterprises (SMEs) as pivotal drivers of climate adaptation and innovation across Africa. This event, supported by esteemed partners including the Global Center on Adaptation (GCA), Climate Investment Funds (CIF), Africa Development Bank (AfDB), and African Technology Innovation Hubs Initiative (AfriLabs) underscored the critical role of SMEs in shaping sustainable development amidst escalating climate challenges.?

Coinciding with World SME Day, the webinar emphasized the significant contributions of SMEs to economic growth and how they contribute to building climate resilient communities and celebrating their essential role in adapting to climate impacts.

The session commenced with a welcome address from the moderator - Venan S. , Chief Stewardship Officer at CHAiNT Afrique , emphasizing the urgent need to bolster support for SMEs in combating climate change.?

Serah Nderitu , Senior Program Officer at the Global Center on Adaptation (GCA) highlighted that SMEs constitute 90% of businesses on the continent, generating 80% of employment and contributing 60% to Africa's GDP. The resilience and agility of SMEs uniquely position them to swiftly address climate impacts in underserved communities.

Kouassi Emmanuel Kouadio , Climate Resilience Programs Lead at Climate Investment Funds (CIF), highlighted the important role SMEs play in influencing change and accelerating Africa's progress towards reaching the goal of net zero emissions and encouraging sustainability. He also reiterated the deep connections SMEs have with their local communities and the impact they have on accelerating growth and development.

Through initiatives like the YouthADAPT Challenge Program - a key component of the Youth Empowerment for Entrepreneurship and Job Creation in Climate Adaptation and Resilience Pillar under the African Acceleration Adaptation Programme (AAAP). So far, YouthADAPT has supported over 41 entrepreneurs across 21 African countries with grants to the tune of $5.4 million since 2021.

The keynote speaker, Dr. Youssef Brouziyne of the International Water Management Institute (IWMI) outlined key strategies for supporting SMEs, including enhancing access to finance and fostering innovation through incubation programs. Challenges like knowledge gaps and complex institutional setups were acknowledged, suggesting a need for tailored support frameworks to nurture sustainable entrepreneurial growth.

Insightful panel discussions were facilitated by experts in the African innovation and entrepreneurship space. Panelists included Chidera Ejiofor , Kris Senanu and Irene Boghdadi ; as well as previous winners of the YouthADAPT challenge - Rita Idehai founder of Ecobarter, Nigeria and Kaveto Tjatjara founder of Flushh, Namibia.?

The panelists highlighted the pivotal role of digital transformation in enhancing SME efficiency and market competitiveness. Several discussants emphasized the importance of digital solutions "from fintech applications to operational software” to optimize internal processes and expand market reach. The consensus pointed towards capacity-building programs and governmental support for Research & Development (R&D) centers as critical enablers for digital adoption by SMEs.

Furthermore, alternative finance models such as African venture funds and crowd-sourcing were proposed, while the importance of capacity-building and government-supported R&D centers were equally highlighted. These initiatives aim to diversify funding streams and enhance SME resilience against financial uncertainties. Another key point was the need for larger, established corporations to support SMEs by including them in their supply chains.

Oluwatoyin Omasan Oyeniyi , Programmes Manager at AfriLabs, concluded the webinar by highlighting the importance of sustained collaboration and innovation in supporting SMEs. She highlighted the role of AfriLabs in nurturing a conducive ecosystem for SMEs to thrive, reinforcing the organization’s commitment to empowering youth-led initiatives for a more sustainable Africa.

The Youth Adaption Solutions Challenge webinar on “Small and Medium-Sized enterprises (SMEs) as Key drivers of Climate Adaptation and Innovation” in Africa not only shed light on the pivotal role of SMEs in climate adaptation and some of the challenges hindering growth such as limited access to finance and policy barriers, but also galvanized stakeholders towards actionable solutions. Investment in adaptation SMEs was emphasized as crucial due to their direct impact on vulnerable communities and rapid market growth potential. With steadfast support from the Global Center on Adaptation (GCA), African Development Bank Group (AfDB), Climate Investment Funds (CIF) and AfriLabs , SMEs are poised to lead Africa's transformation towards a greener, more resilient future. As challenges persist, the collective resolve to empower SMEs through financial support, digital innovation, and strategic partnerships remains steadfast - a testament to the continent's entrepreneurial spirit and commitment to sustainability.