World Export Development Forum will help Africa's SMEs thrive in world economy

Africas over 50 million small businesses are the backbone of the continent’s economy. Trade is the lifeblood of the millions of entrepreneurs looking for opportunities beyond their national borders. Arancha Gonzalez. (Courtesy) So it is high time that the International Trade Centre (ITC), the only United Nations organisation with an exclusive focus on assisting small and medium-sized enterprises (SMEs) internationalise, brings its flagship conference to Africa. The World Export Development Forum (WEDF), to take place in Kigali, Rwanda, from September15-17, will be about ideas and best practices to help SMEs diversify, move up the value chain, innovate, become more productive and generate decent jobs. It will also be an opportunity for businesses to find new partners, tap into new markets and meet potential investors. ITC, in partnership with the Rwanda Development Board, will create an opportunity for African policy makers, trade and investment promotion organisations, and entrepreneurs to talk business but, more importantly, to do business in Africa. African markets are growing, with the African economy expected to expand by over 6 per cent this year. Africa has a plan to ensure its markets become more integrated regionally to benefit from economies of scale and synergies. Investors are looking at Africa as the last untapped growth frontier – and the level of foreign direct investment is expected to grow significantly from last year’s USD 57 billion. But translating this potential into more and better jobs for youth, into more equal societies with economically empowered women and into better serviced rural communities will require collective efforts. President Paul Kagame and other thought leaders, including Richard Sezibera, the Secretary-General of the East African Community, Fatima Haram Acyl, the Commissioner for Trade and Industry of the African Union, and young entrepreneur and investor Ashish Thakkar, as well as practitioners from around the world will help us do that in Kigali. Made in Africa Integrating into regional and global production networks is of particular importance to Africa as trade takes place increasingly within value chains built around large multinationals. It is through value addition that African companies will be able to grow. African industrialisation needs to come front and centre. But tomorrow’s “Made in Africa” will need to go beyond manufacturing. It will also require efficient, well regulated and open services markets, including tourism. It will also be about a more vibrant agro-processing sector, which holds great promise for rural development. It will be about ensuring that extractive industries build linkages with the economies within which they operate. Government policies should actively promote the development of productive sectors where value addition and retention at source are greatest. For that improving trade facilitation is also of the essence, because international companies looking for suppliers will steer clear of countries with cumbersome, expensive and unpredictable border procedures. Lowering transaction costs and waiting times at border crossings are equally key to economic integration within Africa. More and easier intra-Africa trade will be a critical foundation for increased business with the rest of the world. These issues will take centre stage at WEDF. Why SMEs? Small businesses provide close to two-thirds of jobs in Africa. Their increased participation in regional and global trade will lead to improved livelihoods for a large segment of the population, including women and youth. Francis Gatare. (Courtesy) Exporting SMEs tend to be more productive and pay higher wages than those producing for the domestic market alone. The contribution of SMEs to job creation in developing countries is essential. They will be a key source of the close to 500 million jobs that we will need to generate between now and 2030. They are also the backbone for cross-border trade and regional market integration. The theme of WEDF 2014, ‘SMEs: Creating jobs through trade,’ reflects the importance that ITC, RDB and their partners attach to the role of a vibrant private sector in driving trade-led growth and development. Speakers will explore the necessary policy and support measures required to enable SMEs to realise their potential as growth and employment drivers by investing in building productive capacity, improving skills, and supporting access to capital and finance. SME competitiveness is a key factor in determining a country’s overall competitiveness and its ability to respond to international market demand. Empowering women entrepreneurs WEDF will have a dedicated focus on women’s entrepreneurship. A roundtable gathering of women leaders, businesswomen and trade support institutions will discuss corporate and government procurement issues, including a plan to ensure a greater part of government purchases benefit women-owned SMEs. More than 400 women-owned companies from 45 developing countries have registered for the Women Vendors Exhibition and Forum (WVEF) to generate new business. We look forward to seeing you and exchanging ideas at the World Export Development Forum in Kigali! Arancha González is the Executive Director, International Trade Centre, Geneva, and Francis Gatare is the Chief Executive Officer, Rwanda Development Board.

Opinions

World Export Development Forum will help Africa's SMEs thrive in world economy