Small businesses are often the most vulnerable to unforeseen events and threats due to their size and lack of resources, the same source recalls, noting that these SMEs often do not have a plan to deal with disruptions in the supply chain. ‘supply.
Alarming disturbances
Supply chains of small and medium-sized enterprises (SMEs) in central regions around the world have been severely disrupted to unprecedented levels, and with unpredictable resolution times as the virus continues to affect industrial production, notes the press release, noting that companies that usually import goods for resale, especially SMEs, are unable to continue their activities normally due to trade disruptions.
Partnerships with companies like Jumia in Kenya and Nigeria are also making Microsoft solutions available to SMEs in local currency, the statement said, adding that to date intra-African trade is relatively limited; UNCTAD, the main United Nations body responsible for trade, said that it represented only 10.2% of the continent’s total trade in 2010. Between 2010 and 2015, fuels accounted for more than half of African exports to non-African countries, while manufactured goods represented only 18% of exports to the rest of the world.
By creating a single continental market for goods and services, African Union member states hope to boost trade between African countries, the source said, observing that some studies have shown that by creating a pan-African market , intra-African trade could increase by about 52% by 2022, although these forecasts are likely to be revised downwards due to the influence of the pandemic on the local and global economy.
Consolidation of digitalization is essential
Either way, better market access achieves economies of scale, says Microsoft, arguing that combined with appropriate industrial policies, this contributes to the diversification of the industrial sector and the growth of manufacturing value added. .
Digital platforms and the adoption of mobile technology are effective channels for the exchange of values, the statement said, saying that by consolidating demand on the continent, these platforms give small and medium businesses the opportunity to access to new markets and to offer or identify goods and services previously limited by location constraints and marketing costs.
The app currently has over a million downloads – and the team is now looking to reach 10 million active users across French-speaking Africa, the statement said, noting that other platforms, including Biz4Afrika, allow entrepreneurs and SMEs to access valuable business information and resources, finance and markets, which stimulates the growth of small businesses.
A powerful force that spurs cross-border trade is the accelerated advancement of digital technology in areas like business logistics, automated processing and electronic payments, immediate access and the exchange of business information and documents, Microsoft says. adding that cash flow is still a challenge for SMEs, but not much more than when trade is constrained by external factors.
Diversifying and strengthening supply chains is essential to the survival and development of SMEs, insists Microsoft, arguing that “if you consider that by 2035, the International Monetary Fund predicts that Africa will have added to its workforce more people of working age than the rest of the world combined, it is essential that we have a thriving SME sector to absorb these workers and contribute to strong economic growth on the continent “.
(With MAP)
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