The 3rd Annual Micro, Small, and Medium-Sized Enterprises (MSME) Forum, Africa’s largest gathering of MSMEs, kicked off in Windhoek, Namibia, on Monday, September 9, with an exciting agenda aimed at propelling African entrepreneurs to the next level.
The forum that will run till Friday, September 13, 2024, at Windhoek Country Club in Namibia is being held under the theme ‘Fostering Financial Empowerment and Educational Innovation for African Startups & MSMEs.’
This year’s event promises to be a game-changer for African MSMEs, as it brings together over 250 industry leaders, policymakers, and small businesses to promote sustainable development, enhance capacity, and foster innovation.
A Platform for Growth and Learning
In his opening remarks, Ambassador Albert Mudenda Muchanga, African Union Commissioner for Economic Development, Trade, Tourism, Industry, and Minerals, emphasized the forum’s role in providing entrepreneurs with the opportunity to learn, connect, and innovate.
“It is my hope that you will take full advantage of these opportunities and return to your homes and offices with new prospects for the growth of your businesses,” said Muchanga. He also challenged entrepreneurs with key questions essential for formalizing their businesses and scaling beyond the micro and small enterprise stages, essential for trading under the AfCFTA.
“Is your enterpise registered? Does it maintain up-to-date books of account? Do you file in monthly tax returns? How many employees does your business currently have? Does you business have any registered protected trade marks as sources of branding and value? Does your enterprise have a business plan? Have you assessed your potential as an entrepreneur? If you have, are you going to develop your enterprise to make it grow or you want it to remain as it is: micro, or small, or medium enterprise forever?” He asked.
For women entrepreneurs that are aiming to achieve long-term success, having a solid foundation is key to unlocking funding, partnerships, and market expansion.
Breaking Barriers for MSMEs
Ambassador Muchanga also revealed the forum will see the launch of the first edition of the Africa Enterprise Network Fellowship Programme. The 12-month training and mentorship initiative will select 50 MSMEs from across the five African regions.
“The fifty businesses selected are already making positive impacts in the sectors of sustainable agriculture, manufacturing, digital transformation, mineral benefaction and creative industries. The Enterprise Africa Network also connects African MSMEs with markets, skills and financing. It has in this respect, four main pillars; namely: African Trade Observatory, Trade Routes Platform, the Market Intelligence Information System and Investment Financing Network.” Muchanga revealed.
Launch of a Unified Definition for MSMEs in Africa
One of the long-standing challenges African experts and entrepreneurs face is navigating different definitions of what qualifies as enterprise categories, including micro, small, and medium enterprises across different countries. However, following discussions during the specialized technical committee meeting of ministers of trade, tourism, industry, and minerals in Malabo in May 2024, a consensus was reached on a standardized definition for MSMEs across the continent.
Mrs. Ron Osman Omar, Acting Head of Industry, Innovation, and Minerals Division at the African Union, launched the official AU guidelines during the forum.
“The indicator that was agreed that we will use will not be the number of person, the number of employee or whatever else. Out to the army. Year turnover for the SMEs. So we will call a micro enterprise whoever has a turnover less than 1 million. We’ll call it small enterprise, whoever will have less than more than 1 million and less than 5 million. We are talking in US dollar, and then we will call medium enterprise, whoever will have more than 5 million and less than 20 million and over 20 million, we are targeting the unicorns. So those will be the big enterprise.” She revealed.
This article was produced as part of a series of our coverage of the 3rd Annual MSMEs Forum, in Windhoek, Namibia, courtesy of the African Union Media Fellowship.
