All Africa SMEs Association President, Innocent Iyalla Harry calls on all Actors to Support SMEs

To solve the challenges that Small and Medium Enterprises (SMEs) in African countries are faced with, all concerned actors need to strengthen their support, the All Africa Association for Small and Medium Enterprises (AAASME) President, Innocent Iyalla Harry has noted.

Harry, who was recently elected President of AAASME told Africa Update that despite providing 70 percent of the jobs and significantly contributing to the economy of Africa, SMEs still have challenges.

According to him, the enterprises are however facing challenges, including financial constraints and lack of capacity, as they are not well organized.

So for SMEs, Harry said that the association is trying to get people to understand that they have to keep their houses in order, they have to keep a good book of account, and they have to be able to defend what they are doing with the loan they get.

The president revealed that employments are not being created of late and the association has to go back to the value chain to make sure that people are actively engaged in doing what they need to do.

Thus, the association is working on assessing the value chain to scale up employment opportunities and improve financial access.

“Everyone believes that the governments should solve all the problems, but no; we as individuals have to do the best and get all countries of Africa to work together.”

For the SMEs to get the support they need and participate in the Africa Continental Free Trade Area (AfCFTA), the governments of the African countries, the SMEs themselves, and other concerned actors should do their part, Harry underlined.

The SMEs and other businesses in Africa are also expected to face challenges related to tariff issues on the implementation of the AfCFTA, and the governments of the African countries should make uniform, balanced, and harmonized tariff structure.

“The AfCFTA tariff structure is supposed to be uniform and balanced” to smoothly move goods across the borders of the African countries and facilitate intra-African trade in the continent.

The president added that “the governments of the African countries ought to harmonize the tariff in such a way that it becomes good for every participating country. That is the way forward.”

Representing about 90 percent of the businesses, SMEs are crucial in creating jobs and driving economic development in Africa, creating at least 70 percent employment opportunities and contributing 40 percent of GDP.