Chief Executive Officer of the Ghana EXIM Bank, Hon. Sylvester Adinam Mensah, has underscored the critical role of Small and Medium Enterprises (SMEs) in driving economic growth and job creation across Africa.
Speaking at the Global SME Finance Forum in Johannesburg, South Africa, Mr Mensah emphasised that SMEs are central to the continent’s development and must be deliberately supported by governments.
“SMEs are integral to the development of economies. We must therefore champion their growth. Governments do not do SMEs a favour by supporting them to grow. SMEs hold the key to economic growth. Creating the environment and providing support for them to thrive is the way to go. African governments must be deliberate about this,” he stated.
Addressing a packed auditorium of global leaders and stakeholders in the SME ecosystem, Mr Mensah highlighted the significant contribution of SMEs to African economies.
“SMEs make up about 85% of our economies. They are a viable source for jobs and have a palpable impact on economic growth. It is in our interest to remove obstacles in their way and deliberately support them to grow,” he said.
The Forum, organised by the International Finance Corporation (IFC) under the G2.0 initiative, is being held on the theme: “Building Resilience and Creating Opportunities for Growth.”
According to the World Bank, an estimated 1.2 billion new jobs must be created by 2050 to meet the needs of young people projected to enter the workforce in developing countries. However, only about 420 million new jobs are expected to be available, leaving a significant gap. SMEs, Mr Mensah noted, provide the most realistic pathway to bridging this gap and ensuring social stability and economic growth.
Mr Mensah explained that support for SMEs must go beyond financial assistance.
“Supporting SMEs does not only have to come through funding. Providing mentorship opportunities and capacity-building ensures their growth and sustainability. When they then get the funding, they are more likely to do better, as their knowledge and capacities have been enhanced,” he observed.
He further recommended streamlining regulatory processes to make it easier for SMEs to acquire necessary licenses and certifications.
“Facilitating their acquisition of regulatory licenses and certifications by creating a one-stop shop where SMEs can interface with regulators, meet requirements, and get their licenses ensures efficiency in their operations,” he added.
Mr Mensah’s call to action comes amid growing global concern about youth unemployment and its implications for economic and social stability.
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