South Africa leads G20 on inclusive growth in SME’s

South Africa has recently taken a significant step in its economic journey as it assumes the G20 Presidency for the first time under the leadership of President Cyril Ramaphosa. This milestone has placed a spotlight on African small and medium-sized enterprises (SMEs), positioning them at the core of the global economic agenda as well as the continent-wide economic strategy. In a recent interview with CNBC Africa, Pamela Coke-Hamilton, the Executive Director of the International Trade Center (ITC), shed light on the pivotal role of SMEs and the strategies needed to unlock their potential through trade and sustainability. Coke-Hamilton emphasized the critical importance of supporting SMEs and creating an enabling environment for their success, highlighting key areas for growth and inclusivity. A key theme of the discussion revolved around the significance of SMEs in driving economic recovery, especially in the wake of the COVID-19 pandemic. Coke-Hamilton emphasized that SMEs comprise 90% of the global economy and play a vital role in women's economic empowerment, youth startups, and the overall business ecosystem. She underscored the need for governments to focus on providing support structures and facilitating the growth of SMEs to ensure economic resilience and inclusivity. One of the key points raised during the interview was the importance of integrating SMEs into supply chains of key industries such as the automotive sector, pharmaceuticals, textiles, apparel, and agri-processing. Coke-Hamilton highlighted the need to enhance SME participation in these sectors through training, market intelligence, and access to markets. By incorporating SMEs into value chains, countries like South Africa can drive innovation and competitiveness while fostering sustainable economic growth. Moreover, the discussion touched upon the digital divide and the role of technology in bridging gaps for SMEs. Coke-Hamilton emphasized the importance of upskilling SMEs and providing them with digital infrastructure to enable e-commerce platforms and access to finance. She highlighted the potential of fintech solutions in addressing the challenge of access to finance for SMEs and stressed the need for regulatory frameworks to support digital innovation in the financial services sector. In conclusion, Coke-Hamilton outlined a vision for the legacy of SME development and inclusive growth post-G20 Presidency. She emphasized the importance of tangible programs and outcomes that empower SMEs through skills development, access to finance, sustainability initiatives, and women's economic empowerment. Additionally, she underscored the need to create opportunities for youth entrepreneurship in emerging sectors like clean tech and green agro-processing. The goal is to build a robust SME infrastructure within the G20 framework, ensuring that SMEs are recognized as vital contributors to economic growth and prosperity. As South Africa takes the lead in championing SME development and inclusive growth, the spotlight is on creating an environment that nurtures entrepreneurship, innovation, and sustainability. The legacy of the G20 Presidency lies in the clarity of vision and strategy that paves the way for a more equitable and resilient global economy.