The United Nations Economic Commission for Africa (UNECA) commissioned Imani Development to perform a comprehensive review of the Micro, Small and Medium Scale Enterprise (MSME) landscape in Southern Africa. The study sought to understand the challenges and opportunities that MSMEs face in growing their participation in national, regional and global value chains. The objective was to help strengthen the capacity of MSMEs to design and apply innovative approaches that enhance their competitiveness and build resilience to unexpected shocks such as COVID-19.
Prioritizing high growth MSMEs in the six target countries—Malawi, Mauritius, Mozambique, Namibia, South Africa and Zambia— the report shares a selection of case studies based on findings from research on technology and innovation among MSMEs in these countries. Each case study illustrates how innovations and technologies are being used by firms to participate in subregional and global value chains and utilisation of preferential trade agreements to which these countries are parties (SADC, COMESA and AfCFTA).
The report reveals how trade agreements like the AfCFTA have opened up new market opportunities for MSMEs. Additionally, digital tools are empowering SMEs to connect with customers and suppliers more easily, boosting their competitiveness. However, challenges such as limited access to finance, digital infrastructure gaps, and regulatory hurdles continue to hinder some SMEs from reaching their full potential.
To address these challenges and create a more supportive environment for SMEs, the report recommends several strategies, including developing programs to support technology adoption, exploring the use of big data for financial inclusion, and implementing a system to monitor and address non-tariff barriers
Access the full report and case studies; MSMEs, value chains and trade development in Southern Africa.