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Facts about SMEs in Africa

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





Facts about SMEs in Africa - To learn more about this author, visit OECD Development Centre's Website.

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OECD Development Centre
(Visit OECD's Website) Created in 1962 by the Organisation for Economic Co-operation and Development (OECD) in Paris, the Development Centre is an interface between OECD Member countries and the emerging and developing economies. The Development Centre occupies a unique place within the OECD and in the international community. It is a forum where countries come to share their experience of economic and social development policies. The Centre contributes expert analysis to the development policy debate. The objective is to help decision makers find policy solutions to stimulate growth and improve living conditions in developing and emerging economies.

OECD Development Centre is a Platinum author on EvanCarmichael.com
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