Africa, a continent rich in resources, cultural diversity, and untapped potential, has long been recognised as a land of opportunities. This was evident with the mass number of people who travelled from across the world to witness GITEX Africa 2023. At the much talked about tradeshow, which the CEO of KAOUN International, Trixie Lohmirand calls “GITEX Africa Global”, small and medium-sized enterprises (SMEs) emerged as powerful agents of change, fostering entrepreneurship, job creation, and economic development across the region.
The rise of SMEs in Africa
SMEs are the lifeblood of Africa’s economy, driving innovation, promoting inclusive growth, and generating employment opportunities. SMEs represent approximately 90 per cent of all businesses in Africa. They create an estimated 80 per cent of jobs and contribute 40 per cent of the continent’s GDP. Furthermore, SMEs serve as a vital bridge between traditional sectors and the digital economy, harnessing technology to create scalable solutions and adapt to changing market dynamics.
“Africa has immense potential for entrepreneurial growth, and it is vital to create an ecosystem that is propitious to the development of African digital innovation gathering researchers, users, public and private actors, start-ups and SMEs. These technological incubators and accelerators are the key agents of this transformation. They provide a space for young African entrepreneurs to experiment, learn and collaborate, turning their ideas into viable products and services,” said Bérénice Chassagne CEO of Growing Markets at Atos.
Technology has emerged as a transformative catalyst, empowering African SMEs to overcome traditional barriers and realise their full potential. With the advent of digital platforms, mobile connectivity, and e-commerce solutions, SMEs now have unprecedented access to markets, resources, and knowledge. Embracing technology enables these enterprises to streamline operations, enhance productivity, and reach customers far beyond their immediate geographical boundaries. As a result, SMEs in Africa are increasingly leveraging digital tools to drive innovation, deliver customer-centric experiences, and unlock new avenues for growth.
Mastercard, a global payment technology provider, recognises the transformative potential of SMEs in Africa. “We believe in the entrepreneurial spirit of small businesses that embrace opportunities, provide livelihoods, and uplift communities across Africa,” said Ngozi Megwa, Senior Vice President, Digital Partners and Enablers, Eastern Europe, Middle East & Africa, Mastercard. “Women-led SMEs and female entrepreneurs are the single largest untapped resource for the growth of regional economies,” she added.
Women Choice
One compelling aspect of the SME landscape in Africa is the rising tide of female entrepreneurs. The entire African region recognises the potential of women in business, which led to an increase in them. The continent has the highest proportion of female entrepreneurs in the world, with OECD research revealing that more than a quarter of all businesses were either started or are run by women. In Europe, by contrast, the rate of entrepreneurial activity among women is just 5.7 per cent.
Companies like Mastercard and Women Choice play a key role in uplifting female entrepreneurs with access to financing, business networks, mentorship, and skills development programmes. Women Choice, an organisation dedicated to supporting female entrepreneurs, plays a vital role in promoting gender equality and empowering women-led SMEs in Africa.
“SMEs are to Africa what lungs are to the human body; without them it cannot operate. At Women Choice, the mission is to help female entrepreneurs grow. For us, the goal is clear, to help women have the same opportunities as men and support their entrepreneurial journey. With Women Choice partners such as Mastercard, we help women-led start-ups and projects get the necessary tools and ecosystem to thrive. The Social Innovation Incubator (SII) powered by Women Choice which relies on a strong advocacy agenda and a dedicated impact program, will help provide employment to 1 million women in the Arab world across Middle East and North Africa by 2028,” said Nezha Alaoui, Founder and CEO of Women Choice.
An ecosystem for digital innovation
To ensure the sustained growth and success of SMEs, it is crucial to cultivate supportive ecosystems that foster entrepreneurship, innovation, and collaboration. Governments, academia, private sector entities, and development organisations are increasingly recognising the importance of creating an enabling environment for SMEs. Initiatives such as technological incubators, accelerators, and entrepreneurship hubs are emerging across the continent, offering aspiring entrepreneurs a conducive space to experiment, learn, and collaborate.
These initiatives not only provide crucial resources, mentorship, and access to networks but also encourage the exchange of ideas, knowledge-sharing, and the nurturing of a vibrant entrepreneurial culture. As Africa’s potential continues to be unlocked, the entrepreneurial spirit of SMEs will undoubtedly remain at the forefront of sustainable and inclusive development on the continent.
