Business Report Economy

Absa enhances global engagement through B20 report on inclusive trade for MSMEs and women

Ashley Lechman|Published

In an era where inclusivity in trade is paramount for sustainable growth, Absa’s contribution to the B20 report marks a progressive step towards empowering the sidelined segments of society. As the recommendations unfold, they hold the promise of revitalising Africa’s trading landscape and unlocking the potential of its vibrant MSME sector.

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 In a significant move towards enhancing inclusive trade in Africa, the B20 Trade & Investment Taskforce has released a Special Report outlining essential conditions for increasing participation of micro, small, and medium-sized enterprises (MSMEs), particularly women and youth, in the global economy.

This report has been notably bolstered by the contributions of Absa, a Diamond Sponsor of B20 South Africa, which engaged its experts to collaborate with industry bodies and policy institutions in shaping these pivotal recommendations.

The report emerged to address urgent calls from the taskforce to formulate policy solutions aimed directly at dismantling the barriers faced by these often marginalised demographics within African economies.

Drawing from a wealth of successful case studies across the continent, the report delineates practical measures to broaden access to digital technologies, diversify trade finance options, enhance trade facilitation, and strengthen targeted support programmes.

These enablers are envisaged to cultivate a more inclusive trade environment conducive to sustainable economic growth.

“Young people, women, and small businesses continue to face substantial barriers across global value chains,” said Bohani Hlungwane, Absa CIB Interim Managing Executive for Transactional Banking.

“Many lack market access, encounter prohibitive costs related to both tariff and non-tariff measures, and grapple with ongoing challenges in securing the necessary financing. This taskforce initiative aims to unpack these challenges and identify actionable strategies to alleviate these pressures, enabling more equitable participation in trade opportunities.”

The report aims to amplify Africa’s trade contribution by 50% by 2030, advocating for enhanced integration, digitalisation, and improved access to finance.

This initiative aligns with the broader B20 agenda, which seeks to scale SME participation, promote the African Continental Free Trade Area (AfCFTA) implementation, and strengthen trade finance ecosystems.

To advance inclusive trade, the report outlines five priority actions, which include:

  • Expanding and diversifying access to trade finance through innovative blended and risk-sharing instruments tailored for MSMEs, such as invoice factoring, asset-backed lending, credit insurance, and regional guarantee schemes.
  • Developing an integrated MSME export pipeline, connecting Enterprise Support Organisations and Value-Chain Support Organisations with trade promotion agencies to create a seamless pathway from incubation to export readiness.
  • Scaling existing trade incubators into regional export centres of excellence, providing advanced support concerning product quality, standards, and market access.
  • Harmonising and expanding Simplified Trade Regimes nationally to enable swift, secure, and predictable clearing of low-value consignments for MSMEs led by women and youth.
  • Forging partnerships with global and regional e-commerce platforms to seamlessly integrate African MSMEs into established digital marketplaces.

Successful execution of these recommendations rests on robust partnerships among governments, regional and trade institutions, development finance entities, and the private sector. The taskforce has also suggested establishing a steering committee or working group to harmonise actions, mobilise resources, and track progress over time.

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