SME100Africa on the role SMEs in tackling Africa's unemployment crisis

The United Nations has warned that the economic fallout from the COVID-19 pandemic will pose significant challenges in the job market. In light of this, the traditional methods of job creation may not be sufficient to address the crisis at hand. As the world commemorates International Youth Day, it is crucial to highlight the indispensable role that young entrepreneurs and Small and Medium Enterprises (SMEs) play in driving economic growth and employment opportunities, particularly in Africa. Charles Odii, the Founder of SME100Africa, recently spoke with CNBC Africa to shed light on how SMEs can help mitigate Africa's job challenges. Odii emphasized the importance of youth engagement for global action, showcasing the remarkable efforts of young people in advancing international and national agendas. One of the pressing issues faced by young entrepreneurs in Africa is accessing government support during the pandemic. Odii highlighted the disparity between the allocated funds and the actual beneficiaries, citing Nigeria's example where a 50 billion Naira intervention fund saw limited distribution to small businesses. As a result, many SMEs, spanning various sectors like healthcare and fashion, have been left grappling with the economic repercussions of COVID-19. Governments must channel resources effectively to empower small businesses and provide the necessary infrastructure for their sustenance. Despite the challenges posed by the pandemic, young entrepreneurs in Africa have exhibited resilience and innovation in adapting to the new normal. Many have embraced remote work and developed applications to monitor and combat the spread of COVID-19. Initiatives like 'Change Nigeria' have emerged to support vulnerable communities impacted by the crisis, demonstrating the entrepreneurial spirit and social responsibility of Africa's youth. Moreover, young businesses are diversifying their income streams to withstand the turbulent economic climate, shifting focus from hard-hit sectors like tourism to alternative revenue sources. The issue of youth unemployment remains a critical concern in Africa, exacerbated by the mismatch between graduates' skills and market demands. Odii noted that a significant number of university graduates in Nigeria lack essential digital skills required for today's job market, hindering their employability. With over 600,000 graduates entering the workforce annually, the competition for jobs intensifies, underscoring the urgency for young professionals to upskill and adapt to the digital era. Employers are increasingly seeking candidates proficient in digital, social media, and remote working skills, reflecting the evolving nature of the post-pandemic job landscape. In light of these challenges, SMEs have emerged as key players in fostering youth employment and economic development in Africa. By nurturing entrepreneurship, providing training opportunities, and fostering a culture of innovation, SMEs can empower young people to contribute meaningfully to the economy. As Africa navigates through the uncertainty brought by COVID-19, the resilience and ingenuity of its youth, coupled with the support of SMEs, offer a beacon of hope in overcoming the continent's unemployment crisis.