Tweet

Facts about SMEs in Africa

Written by: OECD Development Centre

Article Overview: Very few countries have working definitions of SMEs, except some members of UEMOA/WAEMU and Mauritius and Morocco. So data on this is hard to compare, though patterns can be seen and countries can be ranked by extent of SME activity:

Facts about SMEs in Africa

Very few countries have working definitions of SMEs, except some members of UEMOA/WAEMU and Mauritius and
Morocco. So data on this is hard to compare, though patterns can be seen and countries can be ranked by extent of
SME activity:

• Nearly 80 per cent of firms in Congo have fewer than five workers. The country has 2 100 firms in the formal and
10 000 in the informal sector.
• A 1997 survey in Benin showed that of the 666 SMEs counted, half were in commerce and the rest were mostly
in construction, or were pharmacies and restaurants. Only 17 per cent were in manufacturing.
• SMEs in Kenya employed some 3.2 million people in 2003 and accounted for 18 per cent of national GDP.
• SMEs in Senegal contribute about 20 per cent of national value-added.
• Nigerian SMEs account for some 95 per cent of formal manufacturing activity and 70 per cent of industrial jobs.
• In Morocco, 93 per cent of all industrial firms are SMEs and account for 38 per cent of production, 33 per cent of
investment, 30 per cent of exports and 46 per cent of all jobs.
• Micro and very small businesses in South Africa provided more than 55 per cent of total employment and 22 per
cent of GDP in 2003. Small firms accounted for 16 per cent of both jobs and production and medium and large firms
26 per cent of jobs and 62 per cent of production.

Source: African Development Bank and OECD Development Centre, African Economic Outlook (2004-2005).

Financing SMEs in Africa
by Céline Kauffmann
Policy Insights No. 7 is derived from the African Economic Outlook 2004/2005, a joint publication
of the African Development Bank and the OECD Development Centre

Related Articles
  Restricted Access to Finance
  SMEs - surviving the recession in Africa
  Expanding the supply of finance through the non-financial private sector - Increasing SME Access to Finance: A Four Pronged Approach
  Helping SMEs meet the requirements of formal financing - Increasing SME Access to Finance: A Four Pronged Approach
  SMEs - opportunities in Africa

Article Tags: african development bank, african economic outlook, c line, congo, definitions, extent, gdp, informal sector, jobs in morocco, kauffmann, mauritius, national gdp, oecd development centre, pharmacies, policy insights, production source, small businesses in south africa, smes, uemoa, waemu



Related Forum Posts
Re: In-House or Outsource? - Unfortunately, in the South African context, very few SMEs see outsourcing as an option. They believe it is too expensive, and they are paranoid that someone will "steal their ideas". I believe that the three main functions that cannot be outsourced are marketing, sales and strategy. These must be done in house I believe. If you do not have the marketing skills then get them. Hire a consultant or attend a course, but get the skills. Even if you use a consultant, you need to understand what marketing is about, as no one knows your market like you do. Marketing is made to seem difficult and complex, but everyone who really understands their markets, can easily learn to do their own marketing. In South Africa, labour legislation is extremely inflexibile, and consequently labour broking is a large industry. This is an ideal starting point for SMEs in South Africa, as it is a legally complex area, whih comes with severe penalties. I say do it! Rob Smorfitt
Re: need advice - Africa is a pretty big place I think it is a question of where in Africa you would like to open a call centre. South Africa for example actually has plenty of call centres already operating, so it would very much depend on what part of Africa you are considering. MichelleJ
Re: Newbie from Africa - Hello Biiyke Welcome to the forum. Which part of Africa are you from it is quite a big continent? I live in South Africa. MichelleJ
Adventure travel to Africa. - Africa is a place where adventure is taking place. If you are a travel who loves adventure, nature, culture you should visit Africa. Safari Village operator is a .leading tour operator in Kenya who are offering marvelous tour packages to Africa. Saffari Villages Online is a trusted name for africa travel.
Re: Newbie from Africa - [quote="Evan":22gvtxlq]Welcome to the forums Biiyke! You asked if we know any sellers who were trying to reach the African market... I think you'd honestly have more luck going the other way - try to find sellers in Africa and sell to the rest of the world.[/quote:22gvtxlq] Hello Evan, You are absolutely correct.Thank you for your advice.That's actually the whole idea,Africa to the world and the world to Africa. So I will throw more weight on that area.


Share this article with your friends. Fund someone's dream.

Leave a comment below or share on the left and you'll help support entrepreneurs in Africa through our partnership with Kiva. Over $50,000 raised and counting - Please keep sharing! Learn more.

Tweet

Newsletter

Get advice & tips from famous business
owners, new articles by entrepreneur
experts, my latest website updates, &
special sneak peaks at what's to come!

Name:
Email:

Popular Articles

Download a template or see a lawyer?

10 Golden rules to survive the Global Crisis

Business Coach Explains To You How To Add Value

Suggestions

Email us your ideas on how to make our
website more valuable! Thank you Sharon
from Toronto Salsa Lessons / Classes for
your suggestions to make the newsletter
look like the website and profile younger
entrepreneurs like Jennifer Lopez.