The United Nations Conference on Trade and Development (UNCTAD) says about 50 million Small and Medium Scale Enterprises (SMEs) are suffering about $416 billion unmet financial needs annually.
In its latest report titled: “Economic Development in Africa Report 2022”, UNCTAD stated that Nigeria represents about 38 percent of the financing needs of micro, small and medium-sized enterprises in Africa.
It called for de-risking financing for SMEs, whereby the interest rates are reduced and access to loans are facilitated.
It noted that Nigeria and other countries like Egypt, Ethiopia, Kenya, Rwanda and South Africa are already leveraging this market and that. there is an untapped outsourcing market with increased potential for engagement of productive SMEs in these and other countries in the region.
UNCTAD identified the direct barriers to trade in services in Africa to include the high cost of trade in services and the protectionist policies and measures. According to the report, indirect barriers to trade include infrastructure and equipment issues, low level of digitisation and technology, difficult access to financial services, fuel and mining-commodity dependence. Others are low level of regional integration and lack of a competitive environment.