Investment in SMEs holds the key to Africa’s growth

A trader arranges her products for sale on Customs Road in Mombasa last April. Africa should support small businesses to create job opportunities. FILE PHOTO | NMG

I am often asked this question, ‘what will it take for Africa to develop?’ My answer is simple: invest in micro, small and medium enterprises (MSMEs), whether formal or informal.

Unknown to many, they account for an increasing share of growth in gross domestic product (GDP) and jobs. Yet the typical response is “They are so high risk, we can’t possibly invest in that segment”.

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Note: The results are not exact but very close to the actual.