AAASME underscores its relevance in economic growth of Africa

The All Africa Association for Small and Medium Enterprises, (AAASME) has underscored its relevance in the growing of the African economy.

The President of the Association, Mr. Ebiekure Jasper Eradiri made this known in a paper presented at a symposium with the theme Scaling up Interoperability: Using Mobile Money to Buy and Sell Across Africa.

Eradiri disclosed that SMEs made up approximately 90% of businesses on the continent, providing about 80% of jobs opportunities in sub-Saharan Africa alone.

According to him, SMEs are indeed the true drivers of economic growth and development of our continent.

He, however, added despite its critical role.the SMEs economic impact in terms of Gross Domestic Product remains relatively modest, constituting only 35% in Africa.

“This is so because SMEs face significant challenges that hinder their ability to fully leverage the vast African market. Many SMEs struggle with inadequate infrastructure, limited access to finance, and high operational costs, just to mention a few. These challenges prevent us from scaling our operations and reaching wider markets.

ALSO READ:Kalu urges Igbos to support Tinubu’s administration

“To see the light of this benefit, we believe mobile money has emerged as a game changer for SMEs, offering a viable solution to many of these constraints. Across Africa, mobile money usage has seen exponential growth. The West African Economic and Monetary Union (WAEMU) experienced significant growth in the use of mobile money adding over 110 million new mobile money accounts between 2018 and 2022, in turn boosting financial inclusion from 56% to 71% for a population of over 137 million, with 60% residing in rural areas. In East Africa, mobile money penetration stands at 73%, while in Southern Africa, the figure is approximately 45%.

This technology has revolutionised financial transactions, making it easier for SMEs to conduct business, access financial services, and expand their reach. A whopping 92% of experts predict at least 25% of African SMEs will have an online presence within 3 years, driving demand for digital payments.

The African Continental Free Trade Area (AfCFTA) aspires to create a single market economy, fostering intra-African trade and economic integration. Consequently, the successful implementation of the AfCFTA is expected to yield positive effects on the expansion and development of SMEs.

However, SMEs often find themselves excluded from this grand initiative due to our limited capacity and resources. This symposium, with its theme “Scaling up Interoperability: Using Mobile Money to Buy and Sell Across Africa,” seeks to address this gap. It aims to champion the cause of SMEs by enhancing their ability to participate in and benefit from an integrated African market.

“For integration to make meaningful impact, as it does in other continents, it must actively involve SMEs. If it works for us it works for Africa. Providing SMEs with the necessary tools, support, and infrastructure will unlock tremendous opportunities.

“Empowered SMEs can drive economic growth, create jobs, and foster innovation across the continent. It is generally agreed that SMEs contribute significantly to economic development. We are associated with discovering of new markets and exploiting them to our advantage. Similarly, we are the heart of founding new ventures and providing a source income and employment for millions of Africans.

I, therefore, called on our leaders, heads of state, policymakers, regulators, lawmakers, and all key stakeholders to commit extensively to this cause. We must push the agenda forward, ensuring that SMEs have the freedom and capability to buy and sell across Africa. Together, we can build a robust, inclusive, and dynamic economy that benefits all Africans”