East Africa Chamber secures Ksh4bn to drive SME growth

In a recent interview with CNBC Africa, the President of the East Africa Chamber of Commerce, Richard Ngatia, announced the chamber's successful securing of Ksh4bn to enhance value chains and promote the growth of Small and Medium Enterprises (SMEs) in East Africa. The funding aims to address the challenges faced by SMEs in accessing capital and navigating the economic impact of factors such as the COVID-19 pandemic and climate change. The funding, which translates to Kenyan Shillings, will be used to provide financial literacy training to 28,000 entrepreneurs in the region through scholarships. The training program will cover various essential skills, including microeconomics, artificial intelligence, and business management, in partnership with the European Business Institute based in Luxembourg. This initiative is expected to improve business value chains, market development, and overall enterprise competitiveness in East Africa. The President emphasized the importance of supporting SMEs, especially women and youth-led enterprises, as key drivers of economic growth in the region. One of the critical points highlighted during the interview was the need to support enterprise capacity and financial knowledge to address the challenges faced by SMEs in accessing affordable credit. The focus is on enhancing enterprise expansion, particularly in sectors like agriculture, which employs a significant portion of the youth population. By providing targeted funding and promoting innovation and efficiency in businesses, there is a significant opportunity for African SMEs to scale up and contribute to intra-Africa and global trade. The President highlighted the importance of removing non-tariff barriers and building infrastructure to facilitate cross-border trade and investment within the continent. In line with the efforts to enhance business opportunities for SMEs, the East Africa Chamber of Commerce is also focusing on partnerships within the African Continental Free Trade Area (AfCFTA) agreement. The AfCFTA aims to create a single market for goods and services, liberalize the movement of capital and natural persons, and facilitate the movement of goods across African borders. Kenya's initiative to remove visas for visitors and promote regional integration within the East Africa community serves as a positive example for other African countries to follow. Looking ahead to 2024, the Chamber is collaborating with countries like Comoros, Madagascar, Ethiopia, Seychelles, and the UAE to advance business initiatives and support members within the nine countries under its purview. The President emphasized the importance of engaging development partners, governments, and business councils to drive positive change and sustainable growth across the region. By promoting dialogue, cooperation, and transparency, the Chamber aims to overcome challenges such as climate change and non-tariff barriers to foster a conducive environment for shared prosperity. In conclusion, the East Africa Chamber of Commerce's efforts to secure funding, promote financial literacy, and facilitate partnerships underscore its commitment to supporting SME growth and enhancing business opportunities within the region. Through strategic initiatives and collaboration with stakeholders, the Chamber aims to drive economic development, innovation, and sustainable practices that benefit businesses and communities in East Africa and beyond.