The European Union (EU) has committed approximately €1.1 billion to support the implementation of the African Continental Free Trade Agreement (AfCFTA), according to Mr. Massimo De Luca, Head of Cooperation at the EU Delegation to Nigeria and ECOWAS.
Speaking at the 4th African Union Micro, Small and Medium Enterprises (MSMEs) Forum held in Abuja on Monday, De Luca emphasized that access to finance remains a significant challenge for businesses in the region, particularly for MSMEs.
"Our EU initiative in support of the African Union in the implementation of the AfCFTA hovers around 1.1 billion euros. The African Continental Free Trade Area represents an unprecedented achievement towards realising Africa's full economic potential and integration," De Luca stated.
He warned that if Africa fails to harness the potential in the informal sector for small businesses to grow, the continent would "keep going round the same cycle of despair."
Support for MSMEs and Economic Integration
Ms. Elsie Attafuah, the United Nations Development Programme (UNDP) Resident Representative in Nigeria, highlighted the importance of creating enabling ecosystems to help MSMEs transition from mere resilience to achieving scalable impact.
"Across our continent, MSMEs are the builders of local prosperity. They employ, they innovate, and they adapt, but they cannot thrive on resilience alone," Attafuah remarked. "They need ecosystems that work for them, platforms to commercialise innovation, access to working capital and markets both domestic and continental that recognise their value."
During the forum, Ambassador Afolabi Oke, Permanent Representative of the African Union Sixth Region Global (AU6RG) to Nigeria and ECOWAS, announced the appointment of Mr. Temitola Adekunle-Johnson, Special Adviser to the Nigerian President on Job Creation and MSMEs, as the Special Adviser to the AU 6th Region on Job Creation and MSME Development.
Nigeria's Export and Industrialisation Strategy
Mr. Abubakar Abba Bello, Managing Director of the Nigerian Export-Import Bank (NEXIM), reaffirmed the bank's commitment to MSME financing as a strategic pathway to value chain development and AfCFTA success.
"There's a need for Africa to look inward to develop its value chain. We need to facilitate the success of the AfCFTA, and this is dependent on boosting production," Bello emphasized.
The AfCFTA, which came into effect in January 2021, aims to create a single market for goods and services across 54 African countries, potentially lifting 30 million people out of extreme poverty and boosting the incomes of nearly 68 million others who live on less than $5.50 per day.
The EU's financial commitment underscores the importance of international partnerships in achieving Africa's economic integration goals and supporting the continent's small and medium enterprises.
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