ECA and International Chamber of Commerce launch centre of entrepreneurship in Africa
The Economic Commission for Africa (ECA) and International Chamber of
Commerce (ICC) have jointly launched Centres of Entrepreneurship in
Africa, under the theme, ‘Creating Livelihoods for Inclusion’.
With strategic locations across Africa, the ECA – ICC Centres of
Entrepreneurship will work with various stakeholders, including
businesses, chambers of commerce, academic institutions,
intergovernmental and governmental agencies, to connect local
entrepreneurs to global markets and enhance regulatory conditions for
SMEs to thrive.
The entrepreneurship centres will develop the skills of young people who face uncertain employment prospects to mentoring local start-ups and entrepreneurs. The centres are expected to develop the next generation of African business leaders.
Oliver Chinganya, Director of the Africa Centre for Statistics at the
ECA said, “The launch of the Centres of Entrepreneurship comes at the
right time when Africa is trying to build back better from the effects
of Covid-19. We believe that these Centres, based in different regions
of the continent, and with tailored-made solutions, can mobilize the
next generation of entrepreneurship in Africa.”
Chinganya further
said that the Centres will provide Micro, Small and Medium Enterprises
(MSMEs) with the tools and pathways to expand their business and play an
effective role in the goods and services supply chain. They will also
provide pathways to accelerate women and youth empowerment a necessary
action to accelerate Africa’s growth and recovery from the pandemic.
ECA data shows that MSMEs, often women and youth-owned, account for
approximately 98 per cent of all firms and 60 per cent of private sector
employment in African countries. They are a fundamental part of the
economic fabric of African economies. The youngest and smallest SMEs
contribute to 22 per cent of net job creation on the continent.
Chinganya
added that Africa has the highest rate of new business creation, and
that youth on the continent are 1.6 times more likely to be
entrepreneurs, addressing challenges of high youth under- and
unemployment. The entrepreneurship centres will inspire future
entrepreneurs through skills development, digitalization, and mentorship
critical for women and youth to overcome traditional barriers to
accessing networks
John Denton AO, ICC Secretary General, said
the entrepreneurship Centres are an important platform to scale globally
the most successful local and regional entrepreneurial initiatives
driven by chambers of commerce and innovative partners. “SME plays a
major role in economy and are contributors of employment and 40% of
national income. But they are the most challenged on the continent.
Their contribution could be higher if informal SME are included and are
supported to thrive in the market,” he said.
ICC is expanding its presence in African to prepare and mobilize the next generation of entrepreneurs, from developing skills of young people who face uncertain employment prospects, to helping catalyse local entrepreneurship and the jobs of the future. The main goal is to enable individual citizens to build meaningful livelihoods and to ensure they do this in a functioning market economy.
Lack of proper training on digitalization, excessive business regulations in most countries, and poor infrastructure as some of the challenges faced by MSMEs and entrepreneurs in Africa.
ECA estimates show that the potential of the digital economy in the next 20-30 years could be $47trillion, 20 times the GDP of all of Africa today. With a population of 1.3 billion, Africa has the world’s youngest population, with 70% under the age of 24 and more than 750 million under the age of 35. Given the right opportunities, we know that youth could drive inclusive economic growth across the continent.
