The Economic Commission for Africa (ECA) and the International Chamber of Commerce have jointly launched Entrepreneurship Centers in Africa, under the theme "Creating Livelihoods for Inclusion."
With strategic locations across Africa, the ECA-ICC Entrepreneurship Centers will work with various stakeholders, including businesses, chambers of commerce, academic institutions, intergovernmental and government agencies, to connect local entrepreneurs to global markets and improve regulatory conditions for SMEs to thrive.
The Entrepreneurship Centers will develop the skills of young people facing uncertain employment prospects to mentor local start-ups and entrepreneurs. The centers will aim to train the next generation of African business leaders.
Speaking at the virtual launch on September 16, 2021, Oliver Chinganya, Director of the African Center for Statistics at the ECA, said: "The launch of the Entrepreneurship Centers comes at an opportune time as Africa seeks to recover from the effects of COVID-19 and build back better. We believe that these Centers, based in different regions of the continent and offering tailored solutions, can mobilize the next generation of entrepreneurs in Africa.
These centers will provide micro, small, and medium-sized enterprises (MSMEs) with the tools and pathways to grow their businesses and play an effective role in the supply chain of goods and services. They will also provide avenues to accelerate the empowerment of women and youth, a necessary action to accelerate Africa's growth and recovery after the pandemic.
ECA data show that MSMEs, often owned by women and youth, account for about 98 percent of all businesses and 60 percent of private sector jobs in African countries. They are a fundamental part of the economic fabric of African economies. The newest and smallest SMEs contribute to 22 percent of net job creation on the continent.
Africa has the highest rate of new business creation, and young people on the continent are 1.6 times more likely to be entrepreneurs, addressing the challenges of youth underemployment and unemployment.
The Entrepreneurship Centers will inspire future entrepreneurs through skills development, digitization, and mentoring, which are essential for women and young people to overcome traditional barriers to accessing networks.
"SMEs play a major role in the economy and contribute to employment and 40% of national income. But they are the most contested in Africa. Their contribution could be higher if informal SMEs were included and supported to thrive in the market," says Mr. Denton.
The lack of appropriate training on digitization, excessive trade regulations in most countries, and poor infrastructure are among the challenges facing MSMEs and entrepreneurs in Africa.
The ICC is therefore committed to playing a leading role through these Entrepreneurship Centers to help SMEs and entrepreneurs in the region by raising awareness of potential opportunities. The ICC is thus expanding its presence in Africa to prepare and mobilize the next generation of entrepreneurs, developing the skills of young people facing uncertain employment prospects, in order to help catalyze local entrepreneurship and the jobs of the future. The main objective is to enable citizens to build meaningful livelihoods and ensure that they do so in a functioning market economy.
ECA estimates show that the potential of the digital economy over the next 20 to 30 years could reach $47 trillion, or 20 times the current GDP of the whole of Africa. With a population of 1.3 billion, Africa has the youngest population in the world, with 70% under the age of 24 and more than 750 million under the age of 35. With the right opportunities, we know that young people can drive inclusive economic growth across the continent.
Source: press release