AU intensifies efforts to foster growth of start-up ventures in Africa

The African Union’s Efforts to Foster Start-up Ventures in Africa

Officials are seen at the African Union (AU) Headquarters in Addis Ababa, capital of Ethiopia, on Feb. 15, 2023. (Xinhua/Michael Tewelde)

Introduction

The African Union (AU) has intensified its efforts to foster the growth of start-up ventures in the African continent. Micro, small and medium enterprises (MSMEs) are recognized as the driving force behind innovation in Africa, playing a significant role in the development of new technologies, products, and services.

Importance of MSMEs in Africa

According to figures from the AU, MSMEs are the backbone of the African economy, accounting for 80 percent to 90 percent of all businesses and providing employment to around 85 percent of the continent’s workforce.

The AU MSMEs Forum

The AU is set to host the second edition of the annual AU MSMEs Forum from Sept. 4 to 8 at the AU headquarters in Addis Ababa, Ethiopia. The forum will focus on the theme “Start-up Acts: An Instrument to Foster Development and Innovation in Africa” and will discuss the importance of policies that incentivize young people to start ventures, encourage investors to support promising companies, and engage other ecosystem actors in supporting start-up enterprises.

Strategic Move to Support Industrialization and Economic Diversification

The focus of the 2023 annual MSME forum on how MSMEs can promote African innovation and growth is a strategic move to support the implementation of the commitments from the 17th extraordinary summit on industrialization and economic diversification. The summit emphasized the importance of increasing domestic resource mobilization to support sustainable industrialization.

Comprehensive Policies and Strategies

With MSMEs accounting for a much higher share of total employment and 30 percent of exports in Africa, there is an undeniable need for comprehensive policies and strategies to support their growth, according to the AU.

Expected Outcomes

The upcoming forum is expected to bring together more than 200 key stakeholders from across the continent who are committed to driving Agenda 2063, the AU’s 50-year continental development blueprint. The forum aims to facilitate knowledge exchange, strengthen policy frameworks, and build and strengthen cross-border collaboration.

Officials are seen at the African Union (AU) Headquarters in Addis Ababa, capital of Ethiopia, on Feb. 15, 2023. (Xinhua/Michael Tewelde)

The AU’s efforts to foster start-up ventures in Africa align with the Sustainable Development Goals (SDGs) set by the United Nations. By promoting the growth of MSMEs, the AU is contributing to SDG 8: Decent Work and Economic Growth, which aims to promote sustained, inclusive, and sustainable economic growth, full and productive employment, and decent work for all.

SDGs, Targets, and Indicators

1. SDG 8: Decent Work and Economic Growth

   • Target 8.3: Promote development-oriented policies that support productive activities, decent job creation, entrepreneurship, creativity, and innovation.
   • Indicator 8.3.1: Proportion of informal employment in non-agriculture employment, by sex.

   The article highlights the importance of micro, small, and medium enterprises (MSMEs) in driving innovation and economic development in Africa. This aligns with SDG 8, which aims to promote sustainable economic growth and decent work for all. The focus on fostering the growth of start-up ventures and the emphasis on policies that incentivize young people to start a venture and investors to support promising companies are connected to Target 8.3.

2. SDG 9: Industry, Innovation, and Infrastructure

   • Target 9.3: Increase the access of small-scale industrial and other enterprises to financial services, including affordable credit, and their integration into value chains and markets.
   • Indicator 9.3.1: Proportion of small-scale industries in total industry value added.

   The article emphasizes the role of MSMEs in the development of new technologies, products, and services. This aligns with SDG 9, which aims to promote inclusive and sustainable industrialization and foster innovation. The focus on supporting the growth of MSMEs and the need for comprehensive policies and strategies to facilitate their growth are connected to Target 9.3.

3. SDG 17: Partnerships for the Goals

   • Target 17.16: Enhance the Global Partnership for Sustainable Development, complemented by multi-stakeholder partnerships that mobilize and share knowledge, expertise, technology, and financial resources.
   • Indicator 17.16.1: Number of countries reporting progress in multi-stakeholder development effectiveness monitoring frameworks that support the achievement of the sustainable development goals.

   The article mentions that the upcoming forum will bring together key stakeholders committed to driving Agenda 2063, the AU’s 50-year continental development blueprint. This aligns with SDG 17, which aims to strengthen global partnerships for sustainable development. The focus on knowledge exchange, strengthening policy frameworks, and cross-border collaboration is connected to Target 17.16.

Table: SDGs, Targets, and Indicators

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Source: english.news.cn

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