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Solidarity in Action: Empowering SMEs Through G20 Cooperation and Innovation

 

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
G20 MSME Action Plan: Financing and Policy Enablers
Green Financing: Advance environmental sustainability through green loans, carbon credits, and incentives for SMEs adopting eco-friendly practices. 

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
Digital Innovation: Powering SME Growth and Global Competitiveness
Operational Transformation: Deploy digital tools (AI, blockchain) to enhance efficiency,  transparency, and market access for SMEs.

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
Empowering SMEs in Sustainability, Resilience and Growth
Bridging Funding Gaps: Strengthening credit infrastructures, collateral registries, and regulatory frameworks to reduce risks for lenders and improve SME access to capital. 

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:
The panel explored how South Africa could position its SME sector to benefit from evolving policy landscapes, including supply chain diversification as businesses sought alternatives to traditional markets. The Minister addressed digital trade facilitation tools, including new technologies such as blockchain and AI, alongside innovative financing mechanisms such as export credit guarantees and risk mitigation instruments. The discussion focused on intra-G20 trade facilitation opportunities, South-South cooperation strategies, and capacity-building initiatives to help SMEs navigate complex tariff regimes.

The session concluded with future-proofing strategies for building SME resilience against trade disruptions, emphasizing regional value chain development and government support frameworks that enabled smaller businesses to thrive in an increasingly volatile global trade environment.


Speakers:
Ashor Sarupen, Deputy Minister of Finance, South Africa
Ethiopis Tafara, Regional Vice President, Africa, International Finance Corporation
Mohamed Gouled, Vice President, Industries, International Finance Corporation

 

Moderator:
Bongi Kunene, Managing Director, Banking Association South Africa (BASA)