From Juliana Taiwo-Obalonye, Abuja
Vice President Kashim Shettima has emphasised the urgent need to integrate Africa’s vast informal economy into the formal intra-African trade framework to unlock the continent’s economic potential.
Shettima made the remarks at the 4th African Union Micro, Small and Medium Enterprises (MSMEs) Forum held in Abuja, yesterday, where he highlighted that nearly 90 percent of Africa’s workforce operates within the informal sector, a reality that cannot be ignored if the continent is to achieve sustainable prosperity.
“The promise of a better future for Africa does not depend on skyscrapers or stock exchange transactions, but on harnessing the potential of the informal sector,” he said.
According to a statement by his media aide, Stanley Nkwocha, the VP warned that without this integration, Africa risks perpetuating “the same cycle of despair” and urged policymakers to prioritise a strong MSMEs ecosystem as the backbone of African economic growth.
“There can be no African prosperity without a strong MSMEs ecosystem. This forum is a continental call to action,” Shettima declared.
He conveyed President Bola Tinubu’s message of hospitality and Nigeria’s readiness to collaborate with other African nations to boost MSMEs. He noted the critical role MSMEs play in Nigeria’s economy, contributing 48 percent to the national GDP and employing over 84 percent of the workforce.
“Our investments are deepening to expand the capacity of small businesses because they are engines of inclusive growth and effective tools for poverty alleviation,” he said.
Addressing the persistent challenges faced by MSMEs, such as limited access to affordable finance, Shettima described this as a “recurring nightmare” but expressed optimism about the African Continental Free Trade Area (AfCFTA). “It costs us not just money, but momentum. Yet, there is hope in AfCFTA’s promise,” he remarked.
The forum’s theme: “Building Resilient MSMEs through Digital Innovation, Market Access and Affordable Financing for Africa,” resonated with the Vice President’s call for increased digital adoption and supportive policies.
“Technology is achieving what politics has struggled to do for years,” he said, urging investments in digital infrastructure and regulatory frameworks that foster innovation.
He also highlighted the rise of fintech firms, using alternative data to extend credit to previously excluded entrepreneurs, signalling a positive shift in financial inclusion.
Shettima concluded: “Through our collaborative efforts, we can propel Africa towards a brighter, more sustainable future.”
Deputy Chief of Staff to the President and Chairman of the Host Country Committee, Ibrahim Hadejia, reiterated Nigeria’s dedication to empowering MSMEs. “An investment in our MSMEs is a direct investment in a prosperous, inclusive and self-reliant Africa,” he said.
Special Adviser to the President on Job Creation and MSMEs, Temitola Adekunle-Johnson, stressed the importance of continental collaboration to leverage Africa’s youthful population for economic transformation.
European Union’s Head of Cooperation to Nigeria and ECOWAS, Massimo De Luca, announced a €1.1 billion EU commitment to support AfCFTA implementation, emphasising the EU’s partnership for sustainable industrial development.
UNDP Resident Representative in Nigeria, Elsie Attafuah, underscored the need for enabling ecosystems that allow MSMEs to scale beyond resilience. “They need platforms to commercialize innovation and access to working capital and markets that recognize their value,” she said.
Permanent Representative of the African Union Sixth Region Global to Nigeria and ECOWAS, Afolabi Oke, announced the appointment of Adekunle-Johnson as Special Adviser to the AU Sixth Region on Job Creation and MSME Development, reinforcing the diaspora’s role in Africa’s economic progress.
Meanwhile, Managing Director of the Nigerian Export-Import Bank (NEXIM), Abubakar Bello, highlighted the bank’s commitment to MSMEs financing as vital for value chain development and AfCFTA success. “Africa must look inward to develop its value chain and boost production,” he said.