Mbabane: The common vision of the government’s Strategic Roadmap 2019-2023 where no one needs to be left behind seems to be crippled by the exemption of MSMEs in shopping malls, which need to integrate and accomodate small businesses if the goal of achevinging economic resurgence in the country is anything to go by. Government needs to be able to unlock the future to the growth of Eswatini’s MSMEs by incorporating them in every aspect of the production value.
This view holds true to what Zambian Research Officer and KRIZ CEO, Dr Frank Kayuka said during the 25th Sessioin of the Inter-Governmental Committee of Senior Officials and Experts (ICSOE) of Southern Africa in Ezulwini recently. Kayuka said the growth of shopping malls is a major phenomenon that has characterised the socio-economic landscape of the continent, especially Southern Africa. He said the growth is intially an urban phenomenon, of a middle class orientation, and has now assumed an enduring part of national life for virtually all citizens, even in small towns and rural areas, adding that this signifies a process of modernization, which is good. “However, of importance in the growth of shopping malls is the production value chain in ensuring that small and medium scale enterprises are part of the production system, have market access, and are not displaced by foreign goods, that are often associated with a new taste of modernity that may be cultivated,” said Kayuka.
He said conscious efforts must be made to ensure that MSMEs are part of the growth trajectory of the shopping mall culture, and that African shopping malls must not only promote domestic consumption, but also production and support MSMEs to improve the standard, quality, and value of their goods and services, and also ensure market access, with increased capacity for the MSMEs. “This concept must not end as lip service but must come up with concrete and implementable policy recommendations that will support the realisation of the development aspirations especially the industrialization agenda of the region through MSMEs, said Kayuka, adding that comparative experiences, lessons learned both from the region and elsewhere, should provide a compass to charting the course and future of MSMEs in the southern African region.
Kayuka said in the age of 4D technology, innovation and creativity will be key to the growth and transformation of MSMEs, adding that size will increasingly matter less, but competitiveness, adaptability, and flexibility to respond to changing market environment and dynamics. He said governments will have to do things differently in supporting MSMEs whereby investment in research and development as part of the package of policy incentives will be central to the growth of them. “Fostering linkages between large firms and MSMEs both in the upstream and downstream sectors of inputs and finished products will also be important in supporting our MSMEs and the continent builds Special Economic Zones to attract foreign direct investments,
they must construct an ecosystem that crowds in the MSMEs in the architecture of SEZs,” said the research officer.
He said governments must also not be oblivious of the global trading context in which MSMEs exists and that with the influx of goods from all parts of the World into African markets including poor and sub-standard commodities, the prospects of growth of MSMEs are dimmed. He said while not advocating for protectionism, the issue of regulation, quality, standard and interests of our MSMEs must be taken into consideration in our economic planing process.
“Furthermore, special interests especially of women and youth should be taken into consideration in the MSME policy in ensuring that MSMEs are part of the production value chain at the national and regional levels,” said Kayuka.
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