'Africa needs a new breed of entrepreneurs'

Establishing an enabling environment that allows small and medium-sized enterprises (SMEs) to trade is an important step towards building more resilient economies in Africa, according to the EU-Africa Business Forum in Brussels. “Africa needs a new breed of entrepreneurs who can innovate into new sectors such as the high value-added agro-industry, information and communication technologies, business process outsourcing and development of renewable energies,” said acting deputy executive director of the International Trade Centre (ITC), Ashish Shah. He said that Africa’s private sector could make a significant contribution to the development of the continent and needed the support of governments, donors and international organisations such as ITC to enable it to unleash its potential. The regional economic communities in Africa have made “substantial progress” in integrating their markets by establishing free trade areas and harmonised external tariffs, he added. “Yet these measures have not as yet translated into significant increases in regional or international trade f lows, competitiveness or employment.” He said more engagement with the private sector in new growth segments rather than a continued focus on traditional exports of commodities would boost African trade. “A broader set of actions is required to reduce the barriers to international trade, which includes access to finance, entrepreneurship and skills development, innovation and technology, compliance with private standards and addressing non-tariff measures,” said Shah. He noted that closer attention should be paid to helping women-owned SMEs to internationalise. Despite their growing economic force – with eight to 10 million womenowned SMEs in developing countries – he said women entrepreneurs faced specific challenges such as limited access to finance, export training, market information and other barriers in the business environment. INSERT & CAPTION SMEs represent more than 80% of private enterprises in Africa. – Ashish Shah