Vice President Kashim Shettima has called for the integration of Africa’s vast informal economy into the formal intra-African trade structure, stressing that the continent’s future prosperity hinges on this transformation.
He spoke on Monday at the opening of the 4th African Union Micro, Small and Medium Enterprises (MSMEs) Forum in Abuja.
Mr Shettima emphasised that the African Continental Free Trade Area (AfCFTA) presents a vital opportunity to formalise the informal sector, which currently accounts for nearly 90 per cent of the continent’s workforce.
He warned that failing to harness the potential of small businesses within the informal sector would leave Africa trapped in a cycle of underdevelopment and despair.
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“There can be no African prosperity without a strong MSME ecosystem,” he declared.
“This forum is a continental call to action. We owe it to ourselves, our children, and future generations to integrate our informal economy into the framework of formal intra-African trade.”
Mr Shettima assured participants of Nigeria’s commitment to supporting small businesses, noting that MSMEs contribute 48% to Nigeria’s Gross Domestic Product and employ over 84% of the national workforce.
“They are engines of inclusive growth and effective tools for poverty alleviation. This is why we are deepening our investments to expand their capacity,” he said.
Mr Shettima stressed the importance of cross-border cooperation among African nations, highlighting shared destinies and common economic aspirations.
He identified key challenges facing MSMEs, including limited access to affordable finance, which he described as a persistent obstacle.
However, Mr Shettima expressed optimism that the AfCFTA provides a pathway to overcome these barriers.
He commended the forum’s theme, ‘Building Resilient MSMEs through Digital Innovation, Market Access & Affordable Financing for Africa’ describing it as timely and essential.
He also highlighted the continent’s rapid digital adoption, noting that technology is achieving what politics has long struggled to accomplish.
However, he urged African policymakers to invest in digital infrastructure, bridge literacy gaps, and ensure regulatory frameworks support innovation rather than hinder it.
Mr Shettima further pointed out the need to reduce MSMEs’ dependence on traditional financial institutions, adding that fintech solutions are now making microloans accessible to previously excluded businesses through alternative credit assessment methods.
Welcoming delegates to the forum, he conveyed President Bola Tinubu’s goodwill message, reaffirming Nigeria’s hospitality and readiness to collaborate with other African nations to achieve sustainable growth.
Other key speakers at the forum echoed Mr Shettima’s call for stronger support for MSMEs.
Senator Ibrahim Hassan Hadejia, Deputy Chief of Staff to the President and Chairman of the Host Country Committee, reiterated Nigeria’s dedication to creating an enabling environment where MSMEs can thrive.
The Special Adviser to Mr Tinubu on Job Creation and MSMEs, Temitola Adekunle-Johnson, emphasised the importance of addressing the unique challenges faced by young entrepreneurs across the continent.
Charles Odii, Director General of the Small and Medium Enterprises Development Agency of Nigeria (SMEDAN), applauded the government’s efforts to revitalise the MSME sector and encouraged Nigerians to prioritise patronising locally made products.
The Managing Director of the Bank of Industry, Olasupo Olusi, noted that the bank’s targeted interventions have helped MSMEs adopt digital tools, thereby driving sectoral growth.
Representing the European Union, Massimo De Luca revealed that the EU has committed approximately €1.1 billion to support the African Union’s implementation of the AfCFTA, describing the agreement as a landmark step towards unlocking Africa’s economic potential.
Elsie Attafuah, United Nations Development Programme Resident Representative in Nigeria, stressed the need for enabling ecosystems to allow MSMEs to scale their impact beyond mere resilience.
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Ambassador Afolabi Oke, Permanent Representative of the African Union Sixth Region Global to Nigeria and ECOWAS, announced the appointment of Adekunle-Johnson as Special Adviser on Job Creation and MSME Development for the AU Sixth Region, which represents the African diaspora worldwide.
The Managing Director of the Nigerian Export-Import Bank, Abubakar Bello, reaffirmed the bank’s commitment to MSME financing, underscoring the need for Africa to boost local production and develop its value chains to fully realise the potential of the AfCFTA.
