By Lukman Olabiyi, Lagos
Lagos State Governor Babajide Sanwo-Olu has reiterated the commitment of his administration in supporting Micro, Small, and Medium Enterprises (MSMEs) in order to maximise all the benefits of the Africa Continental Free Trade Area (AfCFTA).
He said his administration is duty bound to position MSMEs to take advantage of AfCFTA by providing the platform and exposing them to skills required to accelerate the effectiveness to stimulate intra-African Trade.
The governor reiterated this at the 8th Lagos State MSMES Exclusive Trade Fair in Ikoyi.
The fair which is an annual marketing access and intervention platform for Lagos MSME operators to showcase their products and services to the larger population of the state and Nigeria at large.
The theme of this year’s edition of the fair: “Empowering MSMEs for AFCFTA Excellence through Sustainable Economic Growth’ was a means of identifying new opportunities for diversification and value chain development available under the agreement.
Sanwo-Olu, represented by his deputy, Dr Kadri Obafemi Hamzat, disclosed that to achieve the goals of AfCTA, the state government had set up Technical Working Group on AfCFTA, which comprises the representatives of both the public and private sectors.
“There is no other place I would rather be on a day like this, than around you all, to challenge you and open your horizon to the economic potentials embedded in this sector for our dear state. In most developed and developing countries, the MSME sector is far bigger than the formal economy and it is a means of livelihood for many people. This sector is a huge economic catalyst, as it constitutes 95 to 98 percent of all businesses, generates 50 percent of the Gross Domestic Products (GDP) and creates between 60 to 70 percent of employment. In Sub-Saharan Africa and South Asia for example, workers in this sector are estimated to account for about 90 percent of the labour force.
’It is quite important, as it bears direct relevance to the clarion call of our administration to transform and position the state as a 21st Century Economy, in line with our T.H.E.M.E.S+ Development Agenda, and in alignment with the economic diversification agenda of the Federal Government.
“Given the prevailing economic uncertainties, added value is an important strategy to acquire and retain customers, increase brand awareness, and differentiate one’s place in the AfCFTA market.
“Consequent upon Nigeria’s joining the AfCFTA, which is poised to become a game changer for the African economy, we are duty bound to position our MSMEs to take advantage of this continental agreement by providing the platform and exposing them to skillset required to accelerate the effectiveness of AfCFTA in stimulating intra-African Trade. This will particularly impact the exports of the State and the Nation to African countries, significantly increasing it between 10 percent and 15 percent in the nearest future. By extension, it will tremendously increase the Gross Domestic Product, GDP of Nigeria, of which our dear State’s economy is a subset”, he said.
In her welcome address, the state Commissioner for Commerce, Cooperatives, Trade and Investment, Mrs Folashade Ambrose-Medebem said: “The AfCFTA, with 43 parties and 11 signatories, is the largest free trade area by number of member states, after the World Trade Organisation. The Agreement thus represents a historic opportunity for Africa to integrate its economies and create a single market, fostering intra-African trade and driving economic development.
Lagos, as the economic heartbeat of Nigeria, stands at the forefront of this transformative journey. However, for AfCFTA to truly unleash its potentials, we must recognise the indispensable role that MSMEs play in our economic landscape.”