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New platform to ease cross-border business operations for SMEs

gudka

Kenya Association of Manufacturers (KAM) chairman Sachen Gudka. FILE PHOTO | NMG

A new regional platform is promising to revolutionise the operations of small and medium-sized enterprises (SMEs) by easing their cross-border operations and minimising risks.

Players are also banking on the Digital Financial Inclusion that the Comesa Business Council (CBC) launched to ride on innovative solutions to drive the growth of SMEs and reduce risks associated with trade.

The project, which received a Sh150 million grant from the Bill & Melinda Gates Foundation, plans to create a continent-wide SME portal as well as a cashless payment platform starting with Kenya and nine other pilot countries.

Kenya Association of Manufacturers (KAM) chairman Sachen Gudka backed the establishment of the portal, saying it is a major milestone in unlocking the potential of SMEs in Kenya and the region.

“Traditional methods of trade on hard cash exchange will be cost-effectively migrated onto the platform that provides digital solutions that support efficient and lower-risk payments,” he said.

KAM chief executive Phyllis Wakiaga urged participating governments to put in place measures that would enable SMEs to trade across borders via seamless movement of raw materials, locally produced and processed goods as well as the free flow of labour.

“We need solutions for challenges making it impossible for SMEs to trade across borders,” she said, adding that the obstacles included unfriendly policies and regulatory regimes that do not accommodate SME needs.

She said Kenya’s partner states must recognise quality standards in the region, easing the need for SMEs to invest in having their products certified by each country they plan to make an entry.

Currently, the East Africa Community states have made major strides in harmonising their standards.

The move has seen SMEs establish subsidiaries across the borders as well as facilitate the exchange of skills and supply their products to a wider market.

CBC Chairperson Marday Venkatasamy said a document is being prepared that will support a request for the enactment of a payment policy by states named in the pilot to allow participating banks to fulfil payment requests.