Deepening Democracy through Access to Information: Mashatile Calls for Global Cooperation to Empower SMEs

Deputy President Paul Mashatile

In a powerful address at the inaugural Global Small and Medium Enterprises (SME) Ministerial Meeting, Deputy President Paul Mashatile emphasized the critical role SMEs play in driving economic growth, job creation, and inclusivity worldwide.

The meeting, held in South Africa, brought together over 50 countries to share policy thoughts, best practices, and forge strategic partnerships to empower entrepreneurs and improve market access.

Mashatile highlighted the significance of access to finance, digital connectivity, and adaptability in enabling SMEs to thrive. He noted that SMEs are crucial contributors to economic development and job creation globally, and their relevance lies in their ability to react swiftly to market changes.

SMEs are the backbone of many economies, providing employment opportunities and driving innovation. In South Africa, for example, SMEs account for a significant portion of the country's economic activity. However, they often face challenges in accessing finance, markets, and technology, which can hinder their growth and development.

Mashatile emphasized that SMEs are not just important for economic growth but also for promoting inclusivity and reducing inequality. "SMEs can play a critical role in promoting economic development and reducing poverty, particularly in rural areas and townships," he said.

One of the major challenges faced by SMEs is access to finance. Many SMEs struggle to access funding, which can limit their ability to grow and develop. Mashatile noted that this is particularly true for SMEs in underserved or underprivileged regions and groups, such as youth and women.

To address this challenge, Mashatile called for governments to step up and enhance their capabilities to strengthen trade and economic diplomacy. He also emphasized the importance of public-private collaboration, where the state can derisk investment through various grants and credit guarantees.

Digital connectivity is also critical for SMEs, enabling them to access new markets, improve their efficiency, and compete globally. Mashatile noted that digital platforms have become key to providing access to finance, as seen through the rapid growth of Fintechs around the world.

However, he also highlighted the need to address the digital divide, particularly in rural areas and townships. "We need to invest in infrastructure and skills, as well as innovation ecosystems, to ensure that SMEs can access the digital tools and platforms they need to thrive," he said.

Mashatile emphasized that governments have a critical role to play in supporting SMEs. He called for governments to prioritize local value creation and expand local supply chain opportunities for SMEs.

"We need to ensure that our policies and programs are supportive of SMEs, and that we are creating an enabling environment for them to grow and develop," he said.

Mashatile also highlighted the potential of the African Continental Free Trade Area Agreement (AfCFTA) to unlock economic opportunities and promote trade, investment, and growth. The AfCFTA aims to create a single, large market for African countries, reducing trade barriers and increasing economic integration.

"The AfCFTA has the potential to significantly enhance Africa's entrepreneurial landscape by reducing trade barriers and increasing market access, enabling youth to expand businesses, innovate products and services, and seize untapped opportunities within the continent," Mashatile said.

The inaugural Global SME Ministerial Meeting marked a significant step towards empowering SMEs and promoting economic growth. The meeting provided a platform for countries to share policy thoughts, best practices, and forge strategic partnerships to support SMEs.

As Mashatile noted, "Supporting young people in their entrepreneurial journeys not only paves the way for a brighter economic future but also nurtures a more inclusive and vibrant global community." With the right support and policies in place, SMEs can play a critical role in driving economic growth, job creation, and inclusivity worldwide.

The meeting concluded with a clear roadmap for effecting structural reforms and actionable investments to empower entrepreneurs, improve market access, and drive inclusive economic growth. As the global community looks to the future, it is clear that SMEs will play a critical role in shaping the economic landscape. With the right support and policies in place, SMEs can thrive, driving economic growth, job creation, and inclusivity worldwide.