Programme Director, His Excellency Nelson Muffuh, the Resident Coordinator of the United Nations in South Africa;
Minister of Small Business Development of South Africa, Honourable Stella Tembisa Ndabeni;
Honourable Ministers and Deputy Ministers from various countries around the world who have graced this historic event;
Senior officials and representatives from various countries;
Executive Director of the International Trade Centre, Ms Pamela Coke-Hamilton, and the rest of the ITC delegation;
Leaders of multilateral organisations, including the AU;
MECs, Mayors and Councillors;
South African Ambassador to the World Trade Organisation, Dr Mzukisi Qobo;
Ambassadors and Members of the Diplomatic Corps;
Startup 20 Chair, Mr. Vuyani Jarana, and members of the International and Local Startup 20 Secretariat;
Directors-General from other departments and provinces, and Board members and executives of our various DFIs and public entities;
Leaders from organised business formations and representatives of the entrepreneurship support ecosystem in attendance;
The MSMEs and entrepreneurs from both visiting countries and South Africa present;
Honourable delegates;
Ladies and gentlemen,
This inaugural Global SME Ministerial Meeting could not have come at a better time.
As we do draw to a close, I could say the discussions and exchanges held in recent days have been filled with pride and optimism, as they highlight our shared commitment to enhancing access to finance, promoting digital transformation, and promoting green transitions in the SME sector.
The discussions have further demonstrated the potential for collaboration and shared goals to unlock significant opportunities for SMEs globally.
In this sense, we are grateful to see the UN expanding its efforts and collaborating with the South African government to foster multilateral cooperation. This relationship is critical in this challenging period of abrupt shifts towards unilateralism, which jeopardise the sustainability of our respective countries and the world.
I am also impressed by the Call to Action for this Global SME Ministerial Meeting. It reaffirms support for critical multilateral initiatives, such as the Sustainable Development Goals, the Pact for the Future, the Global Digital Compact, the Declaration on Future Generations, the Paris Agreement on Climate Change, and the Group of Twenty.
South Africa is hosting the G20 Presidency under the theme of Solidarity, Equality, Sustainability, aiming to champion developmental issues in the Global South, particularly Africa.
As we approach the G20 Summit, this forum has been essential in bringing together a number of ministers and deputy ministers from the continent and the Global South to exchange perspectives.
We have heard your voices and will ensure that we champion the issues you have raised in the broader G20 processes and the G20 Leader’s Summit in November.
I am especially pleased that our G20 Startup Engagement Group’s Mid-Term Meeting happened on the sidelines of this Ministerial Meeting, which allowed for cross-pollination of ideas and propositions.
I know Minister Ndabeni is championing the establishment of a dedicated G20 Working Group on small business and startups, an idea which started under Brazil’s Presidency. This Ministerial meeting has given this initiative the momentum it needs.
I am also pleased to see that a meeting of Trade Promotion Organisations from around the world happened also alongside this Global SME Ministerial Meeting to discuss the impact on trends of trade protectionism and the disruption of global supply chains.
Practical measures were discussed to share trade intelligence, build greater resilience in our MSMEs, and transition to new markets and possibilities.
As Governments, we need to step up. This means we must enhance our capabilities to strengthen trade and economic diplomacy, allowing ourselves to engage more effectively in both bilateral and multilateral trade agreements.
As South Africa, we are strengthening regional trade through the Southern African Customs Union, the Southern African Development Community, and the African Continental Free Trade Area Agreement.
The Free Trade Area Agreement is a significant achievement in creating the world's largest free trade area and unlocking the economic potential of an integrated African market. It promotes trade, investment, and growth, fostering business growth and creating opportunities for young entrepreneurs.
The Free Trade Area Agreement can significantly enhance Africa's entrepreneurial landscape by reducing trade barriers and increasing market access, enabling youth to expand businesses, innovate products and services, and seize untapped opportunities within the continent.
It has the potential to generate millions of new jobs, particularly in sectors such as manufacturing, agriculture, and services.
Speaking of job creation, the SMEs are significant contributors to economic development and job creation globally. We can attribute their relevance in reducing unemployment to their ability to react swiftly to market changes.
As agreed over the past few days, we must prioritise their development to create jobs, raise income, and overall economic growth, all of which benefit the youth, women and other marginalised groups. Our global assistance for small enterprises can help empower young entrepreneurs, allowing them to positively affect their communities and beyond.
However, we need to collaborate and make trading with one another a priority in specialised sectors.
We also need to prioritise resolving the regulatory bottlenecks around cross-border trade and cross border investment.
Honourable Delegates,
As we focus on new markets and trade agreements, we must prioritise local value creation and expand local supply chain opportunities for our MSMEs. This can be achieved by ensuring that the Green Economy Transition, also known as the Just Transition, is supported by clear green industrialisation policies.
I am pleased to see that this Ministerial Meeting considered best practice and policy measures to ensure MSMEs benefit from the Green Economy Transition.
We must also be realistic about the obstacles we confront and how to overcome them. The reality is that we will not be able to industrialise and strengthen inclusivity through MSMEs without capital.
This Global SME Ministerial Meeting has noted challenges around access to capital, especially for Start-ups and MSMEs in underserved or underprivileged regions and groups such as youth and women.
Africa has more than 18% of the world’s population but receives just over 3% of global foreign direct investment and less than 2% of global Start-up capital. where we can access capital, it comes at a cost and is often costed in foreign currency which triggers inflation when there is local currency devaluation. Unfortunately, this scenario is a reality for a significant number of the countries that have convened here.
This Ministerial Meeting has greatly assisted us in looking at ways to derisk capital investment, especially for MSMEs. This includes better public-private collaboration, where the state derisks investment through various grants and in some instances credit guarantees.
The meeting also looked at how we can better capitalise our respective Development Finance Institutions which support MSMEs, as well as regional and multilateral development banks that can better support our national DFIs.
The Ministerial Meeting considered alternative forms of credit rating to address the issue of inadequate collateral, which is a major challenge in countries with high levels of asset inequality like South Africa.
The Ministerial Meeting also looked at how to make underserved MSMEs, especially those from townships and rural areas and those owned by women, youth and people with disabilities, more capital ready through pre-investment business training and capacity support.
In May this year, Trade, Industry and Competition Minister Parks Tau launched a R100 Billion Transformation Fund, which will have a strong focus on MSMEs. We are deliberate about pre-investment support to build the necessary pipeline of compliant and market-ready MSMEs.
Digital platforms have also become key to providing access to finance, as we have seen through the rapid growth of Fintech’s around the world. In this regard, our DFIs such as Small Enterprise Development and Finance Agency, are also developing digital platforms to improve access and turnaround times of applications.
Digital platforms have also become key to market access through e-commerce platforms, although these also bring in cheap products which crowd out locally produced goods. A phenomenon that needs to be managed.
Digitalisation and artificial intelligence offer enormous prospects for MSMEs and the strengthening of support ecosystems.
Minister Ndabeni frequently tells us that we must not simply become consumers of technologies developed elsewhere. We must build our own capabilities wherever we are!
Indeed, there are also new risks with technology becoming intertwined with trade protectionism. We must address the digital divide through investing in infrastructure and skills, as well as in innovation ecosystems.
I believe that this is one of the key matters around which Startup20 is seized.
We look forward to the Startup20 Summit on the 13th and 14th of November, where practical policy measures will be announced.
Programme Director,
This Global SME Ministerial Meeting has provided a critical platform for MSME leaders across more than 50 countries to engage and share policy thoughts and best practice. It has provided space to forge new strategic partnerships, both at a bilateral level and with the multilateral organisations represented here.
The Ministerial Meeting has provided us with a clear roadmap for effecting structural reforms and actionable investments to empower entrepreneurs, improve market access, and drive inclusive economic growth, especially across Africa and the Global South. It has given us well-considered policy content on SMEs and start-ups to take into the G20 Leader’s Summit, which we are hosting in November.
As we look to the future, let us keep in mind how crucial it is to focus on small businesses globally in shaping the future generation. Supporting young people in their entrepreneurial journeys not only paves the way for a brighter economic future, but also nurtures a more inclusive and vibrant global community.
I would want to express my gratitude to Minister Ndabeni for igniting a spark for this journey, which I am confident will result in favourable outcomes.
In addition, we would like to express our gratitude to Ms. Pamel Coke-Hamilton and her team for providing South Africa with the opportunity to host this historic first-ever SME Ministerial Meeting.
To all Ministers and delegates who travelled from afar to be here and share your experiences and thoughts with us, we thank you and wish you safe travels home.
To all delegates, we trust you will take the learnings from this Ministerial Meeting and the earlier Startup20 Engagement session, to strengthen your country-level small business policies and offerings.
As we move forward, it is essential to remember that exploring new business opportunities demands access to finance, digital connectivity, adaptability, and a willingness to embrace change.
Allow me to declare this inaugural Global SME Ministerial Meeting formally closed.
I thank you.
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