Category: Business

The government is on course to enable Micro, Small, and Medium Enterprises (MSMEs) to access quality and affordable credit facilities through a draft Credit Guarantee (CG) policy.

The government first established a Credit Guarantee Scheme in 2020 that facilitated private sector lending to 4,078 MSMEs, amounting to approximately Sh6.18 billion in all sectors of the economy as of December 31, 2023.

Speaking during a public participation forum on the policy organised by the National Treasury, Mombasa Island Assistant County Commissioner Robin Ngeiyo noted that the MSMEs sector is bedevilled with competition, cheap imports, and a lack of security to access loans.

The policy, Ngeiyo said, will, when passed, address challenges facing MSMEs and unlock the potential of the sector that employs millions of Kenyans.

Anthony Njeru from the Ministry of Cooperatives and MSMEs stated that most Kenyans are facing hurdles to accessing credit since most of the commercial banks cannot lend to MSMEs due to a lack of collater
al.

Since the scheme was established four years ago, Njeru noted that many MSMEs have accessed finance through a partnership with seven commercial banks.

‘The policy will facilitate the establishment of a CG company to guarantee loans and a credit guarantee ecosystem,’ said Njeru.

According to the Economic Survey 2023, MSMEs provided employment opportunities for 16 million people, with over 700,000 jobs created in 2022, constituting 86.1 per cent of all new jobs in the market.

Most MSMEs face numerous impediments in accessing credit due to a lack of sufficient collateral, informality, information asymmetry, stringent loan requirements, capacity challenges for business management, and the relatively high cost of credit.

CGs mitigate the risk of default by borrowers by guaranteeing an agreed-upon portion of the loan advance.

To ease access to credit by MSMEs, the policy provides for CGs to come up with clear and transparent operational processes and conditions, eligibility criteria for beneficiary enterpr
ises, and claim validation.

To address information asymmetry between lenders and MSMEs for ease of access to credit, the government will establish MSME outreach centers, provide support in building the capacity of MSMEs to encourage their formalisation, and create a database for all MSME.

It will also strengthen credit information sharing mechanisms, support the harmonisation of business registration requirements in all counties, and support the digitization of MSME business registration services and integration with financial institutions.

To facilitate access to quality and affordable credit for MSMEs, the government will support the establishment and operationalization of a company or a special purpose vehicle with a minority Government shareholding to lead effective and efficient delivery of Government-linked credit guarantees to MSMEs.

Godfrey Nato, a Changamwe resident, lauded the proposed establishment of a government credit company since it will secure loans for MSMEs, as many don’t have log books
or title deeds.

‘The company will address the challenge of security, as many MSMEs have been exploited by shylocks,’ said Nato.

Charles Njenga said public participation should also be conducted at the grassroots, where the majority of MSMEs are found.

On her part, Priscah Odhiambo said the policy will uplift the lives of small business women who have been at the mercy of exploitative lenders.

Source: Kenya News Agency

Addis Ababa: The Global Market Access Programme (GMAP) in Ethiopia announced the significant progresses in strengthening the quality compliance capacity of the honey value chain for enhanced market access.

The GMAP in Ethiopia aims at ensuring compliance with international standards, improving honey products quality, facilitating business linkages, and sustaining project results throughout the honey value chain.

Over the past six months, the project has achieved remarkable milestones.

In this regard, a Business Agreements Signing ceremony, as well as the Handing-over of Beekeepers accessories took place in Jimma, Oromia Regional State.

The Business Agreements signing ceremony marked a pivotal moment in the project’s implementation journey.

Notably, agreements for nearly 90 tons of quality honey and beeswax, for exporting to the international market, were signed between three processors and beekeepers’ community in Gera woreda (Jimma zone), underscoring the tangible outcomes of collaborative efforts.

Fur
thermore, the handing-over of beekeeper’s accessories highlighted the commitment to further empower Ethiopia’s beekeeping community.

Following intensive training sessions, essential beekeeping accessories have been procured and distributed to the lead beekeepers from the Jimma, Illubabor, and Bedele zones, demonstrating tangible support for sustainable quality beekeeping practices.

UNIDO Regional Hub in Ethiopia, Aurelia Patrizia Calabrò said the Global Market Access Programme in Ethiopia is a great example of the impactful collaboration between UNIDO and local stakeholders.

‘We are very happy to witness these positive transformations within the honey value chain, paving the way for sustainable economic growth and enhanced market access’.

The GMAP project remains committed to driving positive changes within the honey value chain in Ethiopia.

State Minister of Agriculture, Fikru Regassa said on his part the GMAP Ethiopia project is actively collaborating with the Ministry of Agriculture and the Ministry o
f Trade and Regional Integration to promote a sustainable honey-producing industry.

The project has been launched at the right time and is aligned with the government’s overarching objectives, prioritizing environmentally responsible practices that benefit both communities and the environment, he added.

Administrator of Jimma Zone, Yusuf Sharo expressed profound optimism as he unveiled the remarkable growth trajectory of the region’s honey exports.

From 15 tons in 2023 to an astounding 90 tons in the first two quarters of 2024, the honey of Jimma Zone flows forth, a testament to the resilience and the boundless potential of the land, he added.

Source: Ethiopian News Agency

Addis Ababa: Ethiopian Aviation University is equipping people with the right knowledge at the highest technology level to avail sufficient number of people for Ethiopian Airlines and other airlines in Africa countries, University Acting President Kassie Yimam said.

In an exclusive interview with ENA, Acting President of Ethiopian Aviation University Kassie Yimam said there is a huge human resources gap in the aviation industry in Africa like pilots, aircraft maintenance technicians, aircraft maintenance engineers, aviation management.

That’s why Africa lags behind the rest of the world in terms of airline performance, aviation, manufacturing, operation, maintenance among others, he elaborated.

To this end, the Ethiopian Aviation University is established to cater qualified people in these fields in sufficient numbers.

The University has now been providing training and education for Ethiopian Airlines and African countries in different aviation professions.

‘We are providing competent qualified professio
nals in piloting, in aircraft maintenance, engineering, cabin crew and customer service agents.’

Global forecasters indicate that there is a very huge gap in trend demand power, especially in Africa, Kassie indicated.

Moreover, he elaborated that the Ethiopian Aviation University is making efforts to fill this gap.

‘The aviation technology service industry is growing at a very fast rate in terms of technology. To go along with the technological developments across the aviation industry in the globe, we have started our degree programs, master’s programs, especially in data science, AI, virtual reality, and so on.’

African human capital can maintain at least the manufactured airplanes, he said, adding ‘we have to start producing essential components for airlines operations.’

Therefore, the university is in line with this vision of equipping people with the right knowledge at the highest technology level to avail sufficient number of people for Ethiopian Airlines as well as the rest of Africa.

Moreover, h
e illustrated that the university has built its capacity, facilities so that it can cater training services for Ethiopian Airlines as well as for other African training centers, organizations, airlines, MROs, pilots, technicians, maintenance engineers.

The over six decades old, the Ethiopian Aviation University, the former Academy, is a world class Aviation Training Center equipped with state of the art and best in class training equipment and technology.

Source: Ethiopian News Agency

Addis Ababa: A National E-commerce Strategy validation workshop is underway in the presence of Deputy Prime Minister Temesgen Tiruneh.

The workshop brought together other high-level government officials including Minister of Trade and Regional Integration, Gebremeskel Chala, Innovation and Technology Minister, Belete Molla and others.

Speaking at the occasion, Deputy Prime Minister Temesgen stressed the need for intensifying digital technologies in all sectors to bring economic transformation in the country.

As Ethiopia’s digital economy carries tremendous promise in unlocking unprecedented growth, the East African nation stands at the precipice of a digital revolution to reshape its economy.The deputy prime minister said over the past few years, the government has been working to create favorable conditions for ensuring digitalization.

He added that by giving due attention to development of the ICT sector various activities have been done with a view of creating jobs, earning foreign exchange and encoura
ging startups.

He further underscored that the main objective of this National E-commerce Strategy is to execute national projects, sustainable economic growth and enhance competitiveness.

The strategy would help to bring about a new trade system, he said, emphasizing the need to ensure safety and security of e-commerce by formulating a legal framework that hindered the sector.

Minister of Trade and Regional Integration, Gebremeskel Chala on his part said the strategy is part of Ethiopia’s digital transformation and it is expected to modernize local markets and help to commerce all over the world through digital platforms.

The National E-commerce Strategy is prepared after assessing national and international trends, he pointed out.

After gathering adequate inputs from stakeholders and to enrich the document, the strategy will be approved by the Council of Ministers.

Source: Ethiopian News Agency

Addis Ababa: Prime Minister Abiy Ahmed said Ethiopia’s resilience amidst challenges is evident through structural economic reforms, prioritizing macro stability and productivity.

Addressing the IDA21 Africa Heads of State Summit in Nairobi, Abiy said Ethiopia has been harnessing resilience in the face of a spectrum of challenges aggravated by external forces, such as climate change, geopolitical tension, and the soaring global cost of living.

‘The Ethiopia government has navigated structural, macro-economic reforms, amid challenges focusing our attention on macro financial stability, productivity enhancement, and favorable investment environment,’the premier stated.

Like many IDA countries, Ethiopia faces unemployment and skill gap challenges, he said, adding with the government privatizing accessible education to empower citizens while encouraging youth engagement in startups across various fields, according to Abiy.

Investment in skills and education is central to Ethiopia’s 10 year development plan wit
h a focus on sectors like agriculture, manufacturing, and tourism, expected to cover over 2 million new jobs.

On other hand, Prime Minister Abiy added that universal energy access stands as a cornerstone for sustainable development.

‘We are massively investing on clean and renewable energy generation projects, which aims to accelerate universal access to affordable and reliable energy for all our people.’

The digitalization of economies has immense potential to enhance connectivity, spur innovation, and expand access to essential services, he said.

In Ethiopia, our telecom sector liberalization, mobile money and digital payment system have expanded financial access in the country.

On other hand, Abiy elaborated that the Horn of Africa faces escalating threats from climate change, including rising temperature, food insecurity, and extreme weather events.

Ethiopia is actively countering this challenge through its Green Legacy Initiative, privatizing afforestation, reforestation and environmental conservat
ion with over 32.5 billion seedlings planted towards a goal of 50 billion in two phases.

Ethiopia aligns with global agreements like the Paris Climate Change Agreement and the 2030 Agenda for Sustainable Development Goals.

While the international development Association’s existing support must be commended, he said, adding the sheer scale for the challenges facing many African countries necessitate a renewed approach.

‘We urge IDA to significantly enhance its financial capacity and funding models, specifically increased support for crisis, preparedness, response and recovery is essential,’ he underlined.

Source: Ethiopian News Agency

WINDHOEK: The Ministry of Industrialisation and Trade (MIT) has embarked on setting up infrastructure for informal traders.

Addressing micro, small, and medium enterprise (MSME) owners of the Moses ||Garoeb Constituency in Windhoek on Saturday, Minister of Industrialisation and Trade Lucia Iipumbu said the ministry has identified the need to upgrade and develop infrastructure of MSMEs and has budgeted N.dollars 4 million under the current financial year towards the Informal Economic Traders Platform Infrastructure Development programme.

She said MSMEs makes up 40 per cent of the country’s traders and therefore the ministry has committed towards budgeting for the upgrading of informal trader economic hubs.

‘We think we have done enough with industrial and SME parks, our focus now is on informal traders. We see many people are selling their products on the margins of the street and many of you are street vendors. So our focus is that each financial year we at least envisioned to give three main informal trad
ers space,’ she said.

She indicated that through the Namibia Industrial Development Agency (NIDA) a total of 46 industrial and SME parks were constructed across the country.

Iipumbu further explained that the programme is done in collaboration with local authorities, noting that under the current financial year, infrastructure development will commence in Okalongo in the Omusati Region, Mariental in the Hardap Region and Henties Bay in the Erongo Region.

She explained a ministerial tour in City of Windhoek’s informal settlements during the COVID-19 era in 2020 identified that about 19 informal economic hubs need infrastructure development.

Also, she noted the ministry has the Industrial Upgrading and Modernisation Programme (IUMP) that offers free training on behavioural change, finance and equally assists traders with equipment between N.dollars 50 000 and N.dollars 400 000.

‘Everybody needs training, even you selling fatcakes. We came to realise that we need to train you on how to manage your finances.
We don’t want you to continue selling 20 fatcakes a day which will gain you a profit that is only enough for you to buy a 1kg maize bag, we want you to grow and think in terms of growth,’ she said.

Iipumbu also indicated that the ministry has revived in 2023 the Equipment Aid Scheme which was halted since 2016 due to budgetary constraints, which supports MSME owners with start-up equipment.

Source: The Namibia Press Agency