• Better funding of agriculture crucial
The All Africa Association for Small and Medium Enterprises (AAASME), has canvassed a new funding model for the over 10 million business owners on the continent in order to enable them to attract easy access to funds from multilateral development banks and other international financial institutions.
The association said a change of template in the funding model has become compelling given the hurdles over 40 million SMEs face as they contribute their quota as the engine of development to the economies of over 1.4 billion people living on the continent.
To encourage access to funding, the association said an Afrocentric model, which leverages the social capital as collateral to draw down on financing should replace the tough conditionalities prescribed by multilateral development banks and other international financial institutions.
AAASME’s President, Dr. Ebiekure Jasper Eradiri said until there is such a paradigm shift in the funding model, Africa’s over 100 million SME’s growth could be stunted.
Eradiri said the body would continue to push for the adoption and ratification of the many protocols of the African Continental Free Trade Area , one of the Flagship Projects of Agenda 2063 Africa’s development framework.
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He said the body continues to push for the implementation of many protocols that will eliminate all barriers affecting the growth and development of SMEs in Africa.
Supporting SMEs , Eradiri said, will not only ignite the growth and economic development of the continent, but create a new pathway to trigger prosperity.
He said it was about time institutions such as Afrexim Bank , NEXIM Bank, Bank of Industry and others focused on a template that would secure more funding for SMEs in the agricultural value chain with potential to guarantee food security for Africa.
He canvassed the setting up of Seed and Gene Bank to boost the development of agriculture in Africa.
Such a bank, he said, will push for food security , and develop a safety net needed to drive the continent’s development.
He said the importance of SMEs and their relevance has earned them a seat on global decisions.
The group stated that it endorses the summit of the future pact for a shared future and assured prosperity with no one left behind.
“We commit to enhanced collaboration with all stakeholders to achieve a set global vision and agenda for the general benefit of the human race. While looking forward to a great future, together we can shape, reframe, re-imagine, and put Africa in its rightful pride of place,” he said.
Eradiri, asserted the need for governments at all levels to own farms along various value chains and also aggressively fund agriculture.
He said: “Apparently, the funding structure and SMEs not following through it is not only a challenge in Nigeria but a huge number of Africans. African countries also have the same experience.”