Naomi Uzor
10 October 2008
The Small and Medium Enterprises (SME) sector across the world has been projected to grow to $250 billion in the ten years from the present size of $17 billion.
Senior Economist, World Bank Africa finance and private sector department, Mr Ismail Radwan disclosed this at a seminar on SMEs organised by the Lagos Chamber of Commerce and Industry .
Speaking on "Fostering the World Bank and SMEs Partnership in Nigeria to Enhance Economic Growth" he noted that 83 per cent of the global market is yet to be tapped adding that the potential for microfinance and SMES in Africa and Nigeria remains largely unexploited
According to him, donors can support government by providing technical support to governments building regulatory frameworks, sponsor innovative experiments that can be scaled-up if successful, invest in retail lending and apex institution that are independent of government, collaborate according to respective strengths and pool resources, support interest rate liberalization and foster strong networks and empower local networks.
He said the leveraging remittances are also important for the development of the SMEs, that the remittances provide an entry point to the financial system through securitization of remittance flows such as mortgages, consumer credit etc and developed financial sectors reduce the cost of remittance transfer that improves domestic retail payment system, develop adequate AML/CFT regulation, consumer information and competition and that the remittance flows to Africa is increasing.
Speaking, he said banks are very reluctant to help the SMEs even if they are willing to pay the percentage involved in it. The public sector can however help by investing in supervisory capacity, adjusting regulatory framework for increased access, maintaining macroeconomic stability, embed microfinance into financial system and involve private sector in poverty reduction strategies.
Speaking at the event, Commissioner for Commerce and Industry, Prince Adeniyi Oyemade has urged banks and multilateral organizations to give serious consideration to stimulate the growth and the development of the SMEs as well as collaborating with Organised Private Sectors (OPS) such as the Lagos Chamber of Commerce and Industry in enhancing economic growth and development of the SMEs.
According to him, the Lagos State government is working relentlessly towards creating an enabling and conducive business environment. One of such programme, he disclosed is the proposed industrial parks for SMEs which is to be provided with uninterrupted power supply, adequate water supply, and road network aimed at supporting the growth of SMEs in the state. recently, as part of our new policy initiatives, the new Eko Microfinance scheme was launched to provide credit at minimal interest rate to artisans ans small businesses in the state
He said the Lagos business directory which was launched recently, comprises the identified, enumerated and registered enterprises in the state reflecting the names of legitimate business owners /trade associations, addresses and nature of their products and services.
The directory, he said, as a source of information is a major trade promotion document that would assist in attracting and facilitating commercial activities in the State for both local and international investors.
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