Mitigating the Impact of COVID-19 on MSMEs in OACPS Countries
MSMEs in OACPS countries face challenges exacerbated by COVID-19. Learn about efforts to support and protect these businesses in ACP regions, particularly in ECOWAS. Government policies, financial schemes, and initiatives aim to ensure business continuity and resilience for MSMEs.
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Presentation Transcript
INTERNATIONAL MSMES DAY COVID-19 CRISIS: MITIGATING ITS IMPACT ON MSMES OF OACPS COUNTRIES, IDENTIFYING AND LEVERAGING OPPORTUNITIES COMMUNICATION ON STATE OF PLAY OF MEANS AND STEPS TAKEN TO PROTECT AND SUPPORT MSME BUSINESSES: BEST PRACTICES FROM ACP REGIONS Hajiya Saratu Iya ALIYU President FEWACCI-ECOWAS
SUMMARY 1. 2. 3. 4. INTRODUCTION UPDATES ON MSMEs IN ECOWAS REGION FEWACCI INVOLVEMENT TO SUPPORT MSMEs CONCLUSION
INTRODUCTION The Micro, Small and Medium enterprises (MSME) forms the major backbone of most developed economies, they make up about 70% of the global employment and about 50% of GDP in developing countries. In West Africa they are one of the main drivers of Economic growth. SMEs in Nigeria contribute 48% of National GDP, make up 96% businesses and 84% of employment. Despite their crucial role, they face daunting challenges like: lack of adequate finance, lack of information and infrastructure, insufficient use of information and technology, lack of adequate raw materials amongst others. The recent novel COVID-19 virus continues to worsen the challenges faced by MSMEs within the region. It is necessary that Governments formulate certain specific policies to enable business continuity and resilience, these policies need to take into consideration the demands of both formal and informal MSMEs.
UPDATES ON MSMES IN ECOWAS REGION Since the outbreak of the virus in February 2020 decisions have been taken at the national, regional and international levels to counter the spread of the disease, the induced effects and uncertainties of the outcome of the crisis had a definite impact on the private sector in ECOWAS member states. In line with its Private Sector Development and MSMEs strategy for smooth and sustainable development, ECOWAS has taken measures to harmonize Governmental intervention to support private sector especially MSMEs during this pandemic. ECOWAS has adopted harmonized measures for ease of doing business in the region and opening of borders to enable MSMEs to operate In each Member State, Governments in consultation with their National Chamber of Commerce and Industry palliatives to cushion the effect on MSMEs. have responded with various
UPDATES ON MSMES IN ECOWAS REGION In Benin Republic, Government developed a 74 billion FCFA Programme to support private sector affected by COVID19 with access to loan in Bank at 0%. In Ghana, Government launched a GH 1 billion COVID-19 Alleviation Business support program to support MSMEs affected by the COVID-19 pandemic, the program is expected to reach 180,000 beneficiaries from various business sectors in the country. The Nigerian Federal Government created a 50 billion Naira credit scheme mainly for households and SMEs that have been mostly affected by the pandemic, there is also a 1 trillion naira loan for the purpose of boosting local manufacturing and production across critical sectors. The Government of Cape Verde also separated 1bn local currency (CVE) for SMEs in all sector of activities with guarantees up to 100%, 300 Million for Macro enterprises with guarantee up to 100%, and 700 million for MSMEs to support procurement operations. In Senegal, the Government has a Force COVID-19 fund worth 1.65 Billion dollars to cushion the effect of the pandemic on businesses, households and diaspora.
The prevailing issue is that the West African region is dominated with a lot of Informal MSMEs who are not able to access the numerous stimulus packages because their unregistered. Most of the people in the informal sector are women and youth, who are often not considered when making policies. There is also a crucial problem of lack of access to proper information on these stimulus packages. UPDATES ON MSMES IN ECOWAS REGION businesses are
FEWACCI INVOLVEMENT TO SUPPORT MSMES During the COVID 19 FEWACCI has been engaged in various Webinars, Virtual meetings with key economic actors in Africa and beyond to devise means and strategies resuscitating businesses affected by the pandemic. Prior to the outbreak of COVID 19, the FEWACCI has involved in promoting the interests of SMEs through engagements and programs. for the purpose of been actively collaborative Currently FEWACCI has a platform that focuses mainly on reviewing the impact of COVID 19 on SMES and recommendations of formulating post- pandemic strategies. One of such program is the West African Competitive (WACOMP) financed by European Union which aims conducive business environment and cultivate intra-regional trade. Programme to promote FEWACCI conducts information dissemination to various business people across West Africa on business opportunities during this period. The improving micro, small and medium sized enterprises (MSMEs). program also focuses on
A special plan and a special fund with innovative forms to: FEWACCI PERSPECTIVES TO SUPPORT MSMES For integration FEWACCI implementation strategy through the involvement of all stakeholders in order to better support MSMEs. It is necessary to set up a special plan on the one hand and mobilise a special MSME fund on the other. a good in is economic West planning of a various 1. Facilitate the development of the informal sector through advocacy and awareness raising; 2. Facilitate access to markets and digital resources; 3. Strengthen the capacity of MSMEs and provide continuous training; 4. Ensuring legal security for MSMEs in the business environment in which they operate; 5. Facilitate financial support for MSMEs and women's entrepreneurship ; 6. Develop join venture council to support SMEs and partnerships. Africa, the new in aspects
CONCLUSION The adverse effect of COVID-19 on MSMEs creates Government formulate and implement policies that will address faced by MSMEs. It is also very crucial that African countries explore technological developing MSME businesses. There should collaborations between the public and private partnerships multinational corporations MSMEs As organizations regional headquarters at ECOWAS COMMISSION and privileged access to ECOWAS Heads of State and Government summit as observer to present private sector position on deepening regional economic integration, FEWACCI is always involved to develop regional policy and support their implementation. one ECOWAS serving public of private a platform dialogue sector as for private with an authorities avenue for to the problems more avenues for be increased But technical and financial support to be able to play its fundamental services to MSMEs. FEWACCI needs more institutional, sector and role of rendering between and
ABOUT FEWACCI La F d ration des Chambres de Commerce et d Industrie d'Afrique de l Ouest (FEWACCI) Date de cr ation : 1976 par les Chambres de Commerce et d Industrie Si ge : Commission de la CEDEAO, Abuja Nigeria Etats membres : Tous les Etats de la CEDEAO y compris la Mauritanie Vision : La FEWACCI est l'une des organisations du secteur priv de la CEDEAO servant de plate-forme pour le dialogue public-priv r gional ayant un acc s privil gi au sommet des chefs d' tat et de gouvernement de la CEDEAO en tant qu'observateur pour pr senter la position du secteur priv sur l'approfondissement de l'int gration conomique r gionale. Note : La cr ation de la FEWACCI fait suite celle de la CEDEAO le 28 Mai 1975 comme r ponse du secteur l int gration conomique r gionale priv a l approfondissement de
HAPPY MSME DAY MERCI
