Deputy President Paul Mashatile called for the elimination of red tape in order to help proliferate cross-border trade for African entrepreneurs.
The deputy president said that most African nations, “typically perform poorly in various categories related to corporate performance and competitiveness due to an unfriendly environment, particularly in terms of intra-continental trade.”
Mashatile made these comments at the Global Entrepreneurship Congress (GEC+ Africa) in Cape Town on Wednesday.
He argues that African nations need to take full advantage of the African Continental Free Trade Area (AfCFTA) agreement.
In his mind this agreement will destroy the trade barriers that constrict certain enterprise amongst countries in the continent.
“The AfCFTA will significantly boost intra-African trade, particularly trade in value-added production and trade across all sectors of Africa’s economy,” Mashatile noted.
“As policymakers, we have to create an enabling environment for our entrepreneurs,” according to the deputy president.
A call for a digital economy
Mashatile said that leaders have a responsibility to make sure that the core foundations of a digital economy are in place. Leaders should make sure that states have a digital infrastructure, digital skills, and cybersecurity capabilities he said.
“We must ensure that by 2030, every individual, business, and government on the continent will be digitally enabled and ready to support a growing digital economy.”
Small, Medium and Micro Enterprises
In addition the deputy president also said that it was vital to address the needs of small, medium and micro enterprises and he called for a credit gap to be created.
“Africa has 18% of the world’s population but attracts only 2% of global capital, and even less global venture capital for start-ups”.
“In South Africa, Minister of Small Business Development Stella Ndabeni-Abrahams has proposed a SMME and Cooperative Funding Policy, which was recently gazetted for public comment,” Mashatile announced.
The new policy asks that the Business Development Service providers in SA make sure they assist small businesses and cooperatives with pre-funding support.
“Without funding, our best start-ups are leaving for tech hubs abroad,” Mashatile concluded.
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