Enabling Ecosystem: Fueling Innovation and Growth of SMEs
2024 Theme
Small and medium enterprises (SMEs) are the backbone of economies worldwide, accounting for over two-thirds of global employment and playing a critical role in job creation and economic resilience. However, persistent financing gaps limit their potential to drive inclusive growth and recovery from economic shocks.
The G20 Global Partnership for Financial Inclusion (GPFI) MSME Action Plan provides a timely framework to address these challenges, fostering resilience and innovation among SMEs while aligning with sustainable development goals (SDGs). The Global SME Finance Forum, an official side event of the G20 South African Presidency, will present GPFI’s comprehensive roadmap to address the systemic barriers hindering SMEs’ access to finance.
G20 MSME Action Plan: Financing and Policy Enablers
Resilient Value Chains: Strengthen sustainable sourcing, fair labour practices, and circular economy models to future-proof SMEs against disruptions.
Tailored Financial Solutions: Provide customised financial tools to promote the financial health and stability of micro and small enterprises.
Scaling Success Stories: Highlight examples of SMEs achieving growth through innovative financing models and sustainable business frameworks.
Digital Innovation: Powering SME Growth and Global Competitiveness
Value Chain Integration: Highlight success stories of SMEs scaling through digital integration, such as streamlined supply chains or cross-border e-commerce platforms.
Global Reach: Equip SMEs with technology to compete internationally, from cloud based accounting systems to AI-driven market analytics.
Empowering SMEs in Sustainability, Resilience and Growth
Policy Reforms: Promoting policies that facilitate working capital, trade finance, and digital payments while supporting financial technologies that simplify SME operations.
Public-Private Partnerships: Encouraging collaboration between governments, financial institutions, and private sector stakeholders to mobilize resources, mitigate risks, and scale impactful solutions
Synopsis:
Participants joined a powerful session that united the agendas of the Startup20 (SU20), the Business20 (B20), and IFC/World Bank Group. As the global economy sought to build a more sustainable and resilient future, supporting SMEs through the lifecycle was critical, particularly as startups remained a complex segment for the private sector to navigate. The session explored how the SU20's mission to empower the global startup ecosystem could be leveraged alongside learnings from the B20's work on effective policy enablers. It also highlighted how IFC focused on SMEs and fueled private sector capital mobilization while working closely with the World Bank on policy enablers.
Speakers:
Ethiopis Tafara, Regional Vice President, Africa, International Finance Corporation
Khulekani Mathe, Business Unity South Africa, Chief Executive Officer, B20 South Africa
Vuyani Jarana, Chairperson, Startup20 South Africa
Moderator:
Paula Maria Leynes Felipe, Regional Manager, Upstream and Advisory Services, FIG Eastern and Southern Africa, International Finance Corporation