Sub-Saharan Africa’s Small and Medium Enterprises (SMEs) despite facing unpredicted changes; COVID-19, SMEs are on the rise. A steady revenue increase has bee recorded.
According to a research by Mastercard, Middle East and Africa (MEA) SME Confidence Index found 74 percent of SMEs in Sub-Saharan Africa are optimistic about the next 12 months. In fact, 68 percent of SMEs in Sub-Saharan Africa are projecting revenues that will either grow or hold steady, and 48 percent of them are projecting an increase.
Upskilling, training, development support and access to credit for future growth
As many regional economies gradually enter the normalization and growth phase, and social restrictions continue to ease, SMEs in Sub-Saharan Africa have identified upskilling staff for the future (73 percent), access to training and development support (69 percent), and easier access to credit (69 percent), as the top three drivers for growth.
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Among all regions surveyed, Sub-Saharan Africa also saw the highest potential in being able to do business internationally (62 percent). This highlights the opportunities for small businesses that arise from both internal transformation and global connections, as well as industry regulations and trends.
Challenges and opportunities
56 percent of SMEs in Sub-Saharan Africa revealed that the challenge to maintain and grow their business was their top issue. Over half (57 percent) identified the rising cost of doing business, while 49 percent cited access to capital. Private sector partnerships (59 percent) and government-led initiatives (51 percent) were identified as having the biggest potential to positively impact SMEs and the wider Sub-Saharan Africa market.
As consumer trends evolve in a post-pandemic world, businesses must adapt and prepare for the future. Mastercard’s Economic Outlook 2021 estimated that 20 to 30 percent of the COVID-19 related surge in e-commerce would be a permanent trend in the share of overall retail spending globally.
