Mkpoikana Udoma
Port Harcourt — Vice President Kashim Shettima has said that Africa’s path to economic transformation lies in formalising its vast informal sector and fully integrating Micro, Small and Medium Enterprises, MSMEs, into the African Continental Free Trade Area, AfCFTA, framework.
Speaking at the opening of the 4th African Union MSME Forum in Abuja, Shettima warned that failure to unlock the potential of the informal economy, responsible for nearly 90% of the continent’s workforce, would continue to trap Africa in a cycle of economic stagnation.
“The promise of a better Africa does not lie in the skyscrapers in our capitals or transactions in stock exchanges. It lies in the untapped potential of our informal sector. If we fail to harness it, we will keep going round the same cycle of despair.”
He emphasized that Nigeria’s economic policies are deliberately structured around MSMEs, citing their critical contribution to GDP and employment.
“In Nigeria alone, MSMEs contribute a staggering 48% to our national GDP and employ over 84% of our workforce. They are engines of inclusive growth and effective tools for poverty alleviation,” Shettima stated.
Calling the forum a “continental call to action,” he urged African leaders to integrate informal businesses into formal trade structures and regional value chains through AfCFTA.
“There can be no African prosperity without a strong MSME ecosystem. We owe it to ourselves and future generations to bring the informal economy into the fold of formal intra-African trade.”
The Vice President also identified affordable financing as one of the biggest challenges stalling MSME growth, calling it a “recurring nightmare.” However, he expressed optimism about the transformative role of fintech and alternative data in breaking access barriers.
“We’re seeing fintechs using alternative data to assess creditworthiness and extend microloans to those previously excluded. Change is unfolding before our eyes,” he noted.
Highlighting the surge in digital adoption across Africa, Shettima said the future of MSMEs hinges on digital infrastructure, market access, and enabling policy.
“Technology is doing what politics has failed to achieve, uniting Africa. But to sustain this momentum, we must invest in robust digital infrastructure, bridge the digital literacy gap, and build regulations that don’t stifle innovation.”
The forum also featured strong support from international partners and Nigerian institutions.
Mr. Massimo De Luca, Head of Cooperation, Delegation of the European Union to Nigeria and ECOWAS, disclosed that the EU has committed €1.1 billion to support AfCFTA implementation.
“The African Continental Free Trade Area represents an unprecedented opportunity. We remain firmly committed to our partnership with Africa and ECOWAS for inclusive and sustainable industrial development,” De Luca said.
Ms. Elsie Attafuah, UNDP Resident Representative in Nigeria, stressed the importance of enabling ecosystems that support innovation and scale.
“MSMEs are the builders of local prosperity. But they cannot thrive on resilience alone, they need platforms to commercialise innovation and access to working capital and continental markets.”
NEXIM Bank Managing Director, Abubakar Abba Bello, reinforced the call for industrialisation and intra-African value-chain development.
“We need to look inward and boost production. MSME financing is a strategic pathway to AfCFTA’s success.”
Earlier, Senator Ibrahim Hassan Hadejia, Deputy Chief of Staff to the President and Host Committee Chair, described the forum as a launchpad for a self-reliant Africa:
“An investment in our MSMEs is a direct investment in a prosperous, inclusive, and competitive Africa.”
Temitola Adekunle-Johnson, Special Adviser to the President on Job Creation and MSMEs, was also appointed Special Adviser on MSME Development to the African Union Sixth Region Global, a move seen as a nod to Nigeria’s leadership in youth entrepreneurship.
SMEDAN Director General, Charles Odii, emphasized the need for Nigerians to patronise homegrown products, while Bank of Industry’s Managing Director, Dr. Olasupo Olusi, detailed the bank’s role in driving MSME digitisation.
With over 40 African countries represented, the AU MSME Forum is expected to yield policy alignment and action plans that will deepen MSME participation in AfCFTA, expand digital trade, and unlock continent-wide economic growth.
