TOWARDS ADVOCACY OF CONSTRAINTS TO SME SECTOR IN COMESA
Common Positions of the SME Associations in the Region
Presented by the COMESA Business Council to the 8th Pan African Congress SMEs and Women Entrepreneurs . April, 23-24, 2013 .
During the 1st CBC SME Associations Workshop held on 23- 24 April,
2013 in Cairo, Egypt, the National SME Associations of the COMESA Region met
and deliberated on key issues affecting the SME Sector in the region. The
discussions led to Common Regional Positions by 12 out 19 SME Associations representing
the Region.
The positions will be presented through the COMESA Business
Council to the various policy organs as recommendations to improve the business
environment of SMEs in COMESA. They are as follows;
Recommendation 1;
The SME Associations have proposed that a letter should be
addressed to the COMESA Secretariat through the CBC, to communicate to all the
COMESA governments on the commitment of SME Associations to engage with
governments on Public Private Initiatives , for the implementation of all
recommendations herein documented.
Recommendation 2; The performance of the SME Industry in the
COMESA region;
1. Member states and Private
sector should bring together all the key stakeholders to have a uniform
regional approach to addressing impediments to SME competitiveness in the
region.
2. Small and Medium Enterprises should advocate to enact national
policies into law as an Act from Parliament for obligatory implementation. The
Act should prioritize the following elements;
- Give
a domesticated definition of SMEs at the National level. Member states should
also agree on the regional customized definition of SMEs that can be adopted
across the member states.
- Provide
for the establishment of a dedicated MSME Authority;
- Provide
for a simplified registration process for SMEs;
- Provide
for a dedicated SME Tribunal for commercial agendas and dispute settlements;
- Provide
for a dedicated SME Fund to upscale the sector.
3. SMEs should set up specific marketing
activities for trade promotion in the region. The priority areas include
regional SME trade fairs and sensitization Forums; Increase participation of
SMEs in regional exhibitions.
4. Member states and industry should recognize
that political will is necessary to drive the agendas of SMEs, especially
focused on enabling market access, standardization of quality products,
protection and patenting of local products and intellectual properties, and
promoting indigenous trade.
5. Member states should support SMEs to have
demand driven, short- term, sector specific training programs for the SME
industry through dedicated training institutions.
Recommendation 2: Enhancing Business Infrastructure
in the region;
1. Member states
should support the capacity building of SME Associations;
2. The SME
Associations should put together strategies to increase information
accessibility for Cross Border Trading(Import and Export businesses) in the
region .
3. SMEs have
faced challenges such as language barriers when conducting business. The SME
Associations should work with Export Promotion Bodies and other relevant
stakeholders to set up instruments that support information on cross border
trading, such as Information Kiosks, ICT Trade Points. The packages should
address issues such as language barriers at border points to facilitate SMEs.
4. There is a need to raise awareness and promote
incentives to Traders on the necessity of registering businesses. An
information package should be set up on rules, regulations and relevant issues
for SMEs who wish to trade in the region.
5. Member states
should support the flexibility of productive inputs through setting up
manufacturing plants that will upscale SMEs to participate in regional value
chains.
6. SMEs
Associations should look at best practice models to engage on income generating
activities to boost self-sustainability and visibility in the market.
7. SMEs have requested for awareness training
programs for decision makers and leaders to understand the needs of SMEs and
women entrepreneurs in order to promote them at a national and regional level.
Recommendation 3: Promoting an enabling
environment for SME Business Operations in the region;
1. There is a
need to have a common segmentation of SMEs in the region, specifically
identifying the Micro, Small, and Medium Enterprises. It is important to
address the needs of Subsistence and Commercial traders separately.
2. SMEs need a
change of mindset on the importance of branding and packaging of products in
order to promote standardization at a national and regional level.
3. SME
Associations have been requested to play a more active role in adopting
strategies of advocacy on impediments to business such as bottlenecks in trade
and customs regulations, numerous administrative procedures, corruption and
complexities of trading across borders .
4. Member states
should look at improving SME policies that should encourage preferential
treatment to SMEs for sectoral growth. Specific focus should be given to
implementing the policy on a percentage of public procurement to SMEs, Creation
of SME Industrial Parks.
5. Member states
should encourage local production and value addition through promoting linkages
with Research , development and Innovation institutions and Centers of
Excellence at national and regional level.
6. SME Associations should seek information
exchange programs at the regional level to learn from best practice countries
and also to promote trade in products and services that are otherwise accessed
at higher costs internationally. This is in the spirit of promoting intra-
trade in the COMESA Region.
7. The SME
Associations have committed to providing information in liaison with relevant
stakeholders including Export Promotion Bodies, on import volumes and product
trends from their markets so that there is an opportunity for businesses at
regional level to tap into these markets and provide good quality products at
competitive prices.
8. There is a need for SME Associations to
identify the needs of “growth oriented SMEs” and set up a framework to
boost their growth and competitiveness in the region.
Recommendation 4; Increased Productivity and
production capacity in value added products and services;
1. SME
Associations are to encourage the sector to promote increased value addition .
2. Member states
should implement cluster approaches for regional value chains , specifically
focused on production ,to manufacturing, to packaging and marketing of
products.
3. Member states
and SMEs have been requested to support branding of products so as to promote
consumer interest and consumption of locally made goods and services.
4. Member states have been requested to encourage
Corporate Social Investment from corporate companies to boost SMEs within their
value chains.
Recommendation 5: On SMEs and Finance;
1. SME
Associations have requested to interact with the banking sector and structure a
common credit rating tool that is uniform and can be applied within the member
states themselves and regionally. This tool can support financial accessibility
for SMEs in COMESA.
2. Member states
have been requested to engage Financial institutions and governments on
customizing more affordable credit lines at national and regional level, that
will facilitate expansion of SME businesses.
3. Member states should address the limited
financial accessibility of SMEs and women entrepreneurs in the region.
Governments and the private sector should structure customized SME financial
vehicles and facilities to boost the industry.
Recommendation 6; COMESA Regional SMEs Advocacy
platform;
1. SME
Associations have expressed the necessity to have a collective regional
approach to the agendas of SMEs through advocacy. To this end, a regional voice
for SMEs should be implemented through the establishment of CBC led- Regional
SME Association. The National SME Associations have pledged to engage their
counterparts in the region to commit themselves to the implementation of common
recommendations of the SMEs at the regional level.
2. The 12 National SME Associations from DRC,
Eritrea, Kenya, Mauritius, Seychelles, Sudan, Rwanda, Zambia, Zimbabwe, Malawi,
Egypt, Swaziland and representatives of SMEs from South Sudan have pledged
their commitment to the above recommendations. They have further pledged to
solicit the commitments of their counterparts in the 7 COMESA member states to
join their regional Advocacy Platform
