SMEs key to Africa’s growth – EXIM Bank CEO
By Nii Trebi Hammond
The Chief Executive (CEO) of the Ghana Export-Import Bank (EXIM Bank), Mr Sylvester Adinam Mensah, has reiterated the central role of small and medium-sized enterprises (SMEs) in Africa’s economic transformation, stressing that governments must adopt deliberate policies to support their growth.
Speaking at the ongoing Global SME Finance Forum in Johannesburg, South Africa, Mr Mensah emphasised that SMEs are not merely beneficiaries of government assistance but key drivers of development.
“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,” he stated.
Mr Mensah explained that creating a conducive environment and extending the right support systems would enable SMEs to flourish.
“Creating the environment and providing support for them to thrive is the way to go. African governments must be deliberate about this,” he indicated.
Mr Mensah, who was addressing a packed auditorium of leaders in the SME ecosystem, pointed out that SMEs constitute about 85 per cent of African economies.
“SMEs make up about 85 per cent 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 stressed.
The Global SME Finance Forum, organised by the International Finance Corporation (IFC) under the auspices of the G20, is being held on the theme: “Building Resilience and Creating Opportunities for Growth.”
Citing data from the World Bank, Mr Mensah observed that 1.2 billion jobs would need to be created globally by 2050 to absorb the increasing number of young people entering the workforce in developing countries.
However, only 420 million new jobs are projected to be created, leaving a significant gap.
“This major shortfall highlights the urgent need for strategies that foster inclusive job creation, and SMEs present the most practical path for creating the bulk of these opportunities essential for social stability and economic growth,” he noted.
Beyond funding, Mr Mensah called for broader interventions to support SMEs, including mentorship, skills development and regulatory reforms.
“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 said.
Mr Mensah further proposed streamlining regulatory processes to ease the operational challenges of SMEs.
“Another way of encouraging SME growth is facilitating their acquisition of regulatory licences and certifications by creating a one-stop shop where SMEs can interface with regulators, meet requirements and get their licences. This ensures efficiency in their operations,” he added.
