Changing processes, management procedures, and interfaces called for by the ongoing digital transformation require investments, which most small businesses can not afford. The partnership aims to help in that regard and support small businesses through various means. 

Pan-African fintech MFS Africa and the International Trade Centre (ITC) recently signed a partnership agreement to accelerate the digitalization of African markets.

According to a release issued by the ITC last Friday, the two “entities will support businesses in more than 10 African markets (Benin, Côte d’Ivoire, Ethiopia, Ghana, Mali, Rwanda, Senegal, Uganda, Tanzania, Zambia) through product integration, capacity building in fintech and digital payments, exposure to investment and business-to-business meetings.” 

“With this partnership, ITC will strengthen its commitment to support small businesses in accessing financing and in digitalization and jointly tackle SDG 8 (Decent Work and Economic Growth). This partnership is the next step into ITC’s ambition to collaborate with the private sector to scale solutions supporting small business,” said Robert Skidmore, Chief of Sector and Enterprise Competitiveness at the International Trade Centre.

According to the LSEG Africa Advisory Group's 2018 report, "The challenges and opportunities of SME financing in Africa," SMEs are crucial for job creation and economic growth in Africa. In Africa, they account for about 90 percent of established businesses, create between 60 percent and 80 percent of jobs, and contribute 40 percent of GDP. In comparison, SMEs in the United States and Europe represent 53% and 65% of established businesses respectively. 

Through this partnership, ITC and MFS Africa will help put small businesses at the heart of financial inclusion and digitalization. The partnership marks an important step in contributing to the United Nations 2030 Agenda for Sustainable Development. It will "build a new era where small business is at the heart of economic growth for the benefit of millions of African citizens," according to Ali Ouedraogo, head of expansion at MFS Africa.

Samira Njoya