Policymakers' Panel: State of Foundational Digital Infrastructure
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:
Africa stands at a critical juncture in its digital transformation journey. With over 60% of its population under 25 and 54 diverse economies, the continent faces both unprecedented opportunities and unique challenges in building foundational digital infrastructure. For Africa's SMEs, who struggle with informality and limited access to finance, DPI represents a pathway to formalization and growth. Interoperable payment rails can enable cross-border trade aligned with African Continental Free Trade Area (AfCFTA) goals.
However, building inclusive DPI in Africa requires addressing complex challenges around digital literacy, cybersecurity, data governance, and ensuring that infrastructure investments don't exacerbate existing inequalities. The panel discussed the opportunities and challenges in building Foundational Digital Infrastructure, as well as regional coordination and interoperability frameworks that could support continental integration while respecting national sovereignty.
Speakers:
Ghita Erling, Chief Executive Officer, Payments Association of South Africa
Jean d'Amour Ishimwe, Head Enterprise Security, Pan African Payment and Settlement System (PAPSS)
Melvyn Lubega, Partner, Breega
Moderator:
Tim Masela, Former Head, National Payment System Department, South African Reserve Bank