Women, youth dominated SMEs- Ernest Addison

Dr Ernest Addison, Governor of the Bank of Ghana (BoG), reported that the Ghanaian economy’s small and medium-sized enterprises (SMEs) market is dominated by women and young people with large opportunities to tap economic potential.

He said that about a third of all SMEs in Africa are owned by women, according to World Bank figures.

He observed that like others across the African continent, the sector contributes greatly to economic development by providing goods and services, generating employment opportunities and helping to alleviate poverty.

Notwithstanding these contributions, small and medium-sized companies across Africa face significant restrictions that stifle their successful involvement in foreign trade.

Over time, however, the and adoption of emerging technologies by states, companies and households is increasingly opening up opportunities for small and medium-sized enterprises to pursue affordable digital alternatives and effectively engage in foreign trading, manufacturing and investment value chains.

The introduction of mobile cash across Africa is a game changer in fostering financial inclusiveness and improving economic development. In Ghana’s payment service space, for example, the growing use of technology has engineered innovative, effective and sustainable financial goods and services. The government and the Bank of Ghana’s sound regulatory structures and policy guidelines to help payment service providers, including Fintechs, support these findings.

These were said by Dr Addison at the Singapore Fintech Festival 2020 while presenting the key note speech.

He said the example of Ghana indicates that strong policy support and initiatives are beneficial and can exploit the digital payments industry’s capabilities to improve the competitiveness of SMEs for foreign trade. On a positive note, African governments and their counterparts in Asia have undertaken actions to make

For the interconnection of economies by technologies and trade policy harmonization, as well as the exchange of information and experiences.

“In this respect, I would like to acknowledge Singapore’s leading role in promoting international SME trade between Africa and Asia as part of the Business Sans Borders project,” he said.

Currently, via the African Continental Free Trade Region (AfCFTA), formed on May 30, 2019, the African Union is also exploring the ability of digital trade to accelerate economic development and reform the norms of foreign trade. African economies, which have a projected population of 1.2 billion and a total GDP of over US$2.5 billion, are projected to open up to foreign markets in the Free Trade Region.

Yeah. Exchange. This will also provide SMEs on the continent with vast resources to develop and engage successfully in intra-regional trade, as well as to explore foreign markets.

To take advantage of foreign markets, African SMEs need to have ready access to digital merchant accounts, regulations regulating data privacy and cyber security, and extensive access to digital merchant accounts. To push the agenda, national policies. The criteria for firms to use digital accounts in most countries are onerous and steep, rendering digital retailer accounts available only to large corporations. There is a need for automated merchant account strategies, based on the concepts of regulatory proportionality and aimed at ensuring merchant inclusiveness, to address the unintended exclusion of SMEs from such opportunities. This is because digital trade policies that address merchant trade policies are discussed Inclusiveness is likely to lead to a significant digital transformation. Ghana has welcomed this approach and laid the groundwork for digital payments to be collected and rendered by SMEs.

“Another crucial aspect needed to advance the African-Asian SME Trade Corridor promotion agenda is the introduction by Member States of regulations implementing data privacy, consumer protection and consumer redress processes, as well as cyber security. It is anticipated that these regulations will ensure the cross-border flow of data, protect customer rights on digital networks and encourage the protection of business platforms in order to create confidence in digital trade.

Facilitating access to the global market for small and medium-sized businesses using emerging technologies often includes a robust national policy aimed at developing a digital economy. In Ghana, digitizing small and medium-sized businesses (SMEs) is part of a larger national policy to digitize the economy. The plan tackles infrastructure, cyber and computer protection concerns, digital and financial integration, and digital growth issues. This holistic technique Identifies and utilizes complementarities for effectiveness and cost-effectiveness in the growth of retailer e-commerce systems especially in digital payments and e-commerce.

It is expected that a stable and resilient digital infrastructure will pave the groundwork for the use of digital technologies by SMEs to expand the distribution of goods and services across various jurisdictions. The African Union introduced an Action Plan to Improve Intra-African Trade in January 2012 (BIAT). The Action Plan, which aims to deepen the market penetration of Africa using trade as a weapon, would require significant investment in Digital infrastructure to achieve accelerated socio-economic growth in a sustainable way. Despite the difficulties associated with trade digitization, African economies have a greater role to play in developing local capacity, fostering SME development and promoting the use of emerging technology in trade ties with their counterparts in the Asian bloc. In addition, African countries will have to accept digital trading and Establish policies and plans that make it easier for them to benefit from potential trade commitments. With the deepening of the integration of global networks, the expectations for an international regime in the digital economy remain clearer now than ever. In conclusion, Ladies and Gentlemen, let me stress the road towards deepening trade by needing investment in capacity building and skills by digitization.

SME Growth. The accelerated introduction of emerging technology and facilitation of trade links with counterparties would be powered by this. I assume that this forum will deliver new insights and insights on forming policy strategies for tackling some of the challenges of the Africa-Asia bloc’s digital economy and global trade in general. Thank you and enjoy the remainder of the program,

Source: 3news



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