Supporting SMEs for Africa's Economic Transformation

SMEs, particularly those owned by women and youth, form the backbone of the continent's economy. - President Paul Kagame

At the Biashara Afrika 2024 forum in Kigali, President Paul Kagame emphasized the pivotal role of small and medium enterprises (SMEs) in Africa’s economic landscape. He highlighted that SMEs, particularly those owned by women and youth, form the backbone of the continent's economy. However, Kagame stressed that these enterprises must not remain small but must scale to realize their full potential.

With the implementation of the African Continental Free Trade Area (AfCFTA), Kagame urged African governments to focus on creating an enabling environment for these businesses to thrive. He identified removing non-tariff barriers, reducing high logistics costs, and facilitating cross-border movement as key measures to promote SME growth.

Kagame’s call to action is critical as Africa works to deepen regional integration and build robust continental value chains. While the AfCFTA has achieved significant milestones, challenges remain in infrastructure, trade finance, and free movement of people. Fast-tracking solutions in these areas is essential for SMEs to benefit fully from the agreement and contribute to Africa’s economic transformation.

In conclusion, supporting SMEs and fostering a conducive business environment are vital steps toward sustainable growth and job creation in Africa as the continent seeks to unlock its potential through AfCFTA initiatives.