Ekurhuleni: Small Business Development Minister Stella Ndabeni has revealed that South Africa will champion the cause of the establishment of a G20 Micro, Small, and Medium Enterprises (MSMEs) and Startup Working Group. The Minister was delivering remarks at the inaugural Global SME Ministerial Meeting in Ekurhuleni on Wednesday.
According to South African Government News Agency, the sector currently enjoys inclusion in the G20 through the Startup20 Engagement Group. The Minister stated that efforts will be bolstered to support market access, access to capital, and ensure that MSMEs are recognised as strategic actors. She advocated for the establishment of a dedicated G20 MSME and Startup Working Group to be included in the G20 declaration in November.
The Minister emphasised the role that MSMEs play in reaching even the marginalised, describing them as engines of inclusive growth and anchors of community resilience. She highlighted the adaptability of MSMEs in a volatile world but noted their vulnerability if not enabled to adapt to global standards, digital technologies, and climate-smart markets.
Ndabeni urged delegates at the Ministerial Meeting to share best practices and forge new strategic partnerships to strengthen country-level SMME support ecosystems. She warned of the rapidly changing global value chains and trade protectionism that threaten markets and MSMEs, particularly in developing countries.
Addressing the funding challenge, Ndabeni acknowledged the extreme funding gap, especially in developing countries. She cited that Africa, despite having 18% of the world’s population, receives less than 2% of global venture capital flows, resulting in tech hubs moving elsewhere.
Ndabeni noted the South African government’s efforts to assist small businesses, yet the funding gap is estimated at $20 billion. She called for the ministerial meeting to propose solutions for capital access, marking the beginning of a bold new global compact for MSME development, expanding market access, unlocking affordable finance, and ensuring inclusion for women, youth, and underserved communities.
