Vice-President Kashim Shettima has highlighted the crucial role financial technology (fintech) firms can play in expanding access to microloans for African small and medium enterprises (MSMEs), which remain burdened by limited financing options.
Speaking at the opening of the 4th African Union MSMEs Forum, Shettima stressed that Africa’s future prosperity hinges on strengthening its MSME ecosystem and formally integrating its vast informal sector, which accounts for nearly 90 percent of the continent’s workforce.
He pointed to the African Continental Free Trade Area (AfCFTA), digital transformation, and targeted infrastructure investments as vital levers to support innovation and unlock economic growth.
“If we do not harness the informal sector to allow small businesses grow, we will keep going round the same cycle of despair,” Shettima warned. “There can be no African prosperity without a strong MSME ecosystem.”
Calling the forum a continental call to action, he urged African leaders to take deliberate steps to transition informal enterprises into formal trade structures under the AfCFTA. “We owe it to ourselves and future generations to transform our shared aspirations into concrete actions that empower MSMEs and create a sustainable future.”
Shettima also emphasised MSMEs’ central role in Nigeria’s economy, noting they contribute 48 percent to the country’s GDP and employ over 84 percent of its workforce, making them a true reflection of national potential.
Supporting this vision, Massimo De Luca, head of cooperation at the EU delegation to Nigeria and ECOWAS, confirmed that access to finance remains a major constraint for West African MSMEs. He announced a €1.1 billion EU commitment to support AfCFTA implementation, aiming to reduce such barriers.
Other key stakeholders echoed the need for collaboration and local solutions. Ibrahim Hadejia, deputy chief of staff to the chairman of the host committee, described the forum as a step toward a self-reliant Africa where MSMEs can flourish.
Temitola Adekunle-Johnson, special adviser to President Bola Tinubu on job creation and MSMEs, said the gathering is an opportunity to engage Africa’s young population in addressing entrepreneurship challenges.
Charles Odii, director-general of SMEDAN, urged Nigerians to support locally made products as a practical step toward strengthening domestic MSMEs and building a resilient economy.
