Ministers, senior officials, and business leaders from East African Community (EAC) countries have recognized small businesses as critical drivers of economic growth, emphasizing the need for improved access to finance and greater participation in green and digital trade.

This consensus emerged during the first regional roundtable following the Global SME Ministerial Meeting in Johannesburg in July.

The roundtable took place during the 25th EAC Micro, Small, and Medium-sized Enterprises (MSME) Trade Fair, hosted by Kenya

It was co-hosted by Wycliffe Oparanya, Cabinet Secretary for Cooperatives and MSME Development, and Pamela Coke-Hamilton, Executive Director of the International Trade Centre (ITC).

Participants included country representatives from Burundi, Rwanda, Somalia, and Uganda, alongside high-level delegates from over 15 nations, including Barbados, Belgium, France, India, Indonesia, Norway, and the United Kingdom.

The event also drew participation from the World Bank and the United Nations Resident Coordinator for Kenya, representing the UN system.

In Kenya, SMEs contribute approximately 30% of GDP and account for over 90% of all new jobs. Across the EAC region, SMEs represent more than 90% of businesses, 60% of employment, and 29% of regional GDP. Despite being major drivers of employment and growth, SMEs face significant challenges globally.

“This Trade Fair recognizes the creativity and resilience of SMEs while we recommit ourselves as policymakers and partners to address the challenges they face, through the green transition, access to finance, skills development and technology adoption,”said Cabinet Secretary Oparanya in his welcome address.

He stressed that a supportive ecosystem is essential for SMEs to reach their full potential and highlighted the role of youth-led innovation in tackling unemployment.

Small businesses are drivers of economic growth, national and regional, advancing innovation and regional value chains,” said Cabinet Secretary for EAC Affairs of Kenya, Beatrice Askul. ”SMEs help reduce poverty, empower women and support income distribution.”

Supporting sustainable and inclusive SME growth requires coordination under the African Continental Free Trade Area (AfCFTA).

“The AfCFTA is not just a trade agreement, it’s a catalyst for industrial development, innovation and inclusive growth in countries and among countries,” said AfCFTA Secretary-General Wamkele Mene, delivering the keynote address.

A panel discussion following the keynote highlighted priority areas for SME support, based on feedback from 60+ countries during the Global SME Ministerial Meeting: access to finance and markets, and engagement in green and digital trade.

ITC research shows that 43% of businesses face difficulties accessing finance, rising to 57% among micro firms. Over 80% of companies report that digital technologies helped boost sales and reduce costs, although firms remain heavily influenced by the digital readiness of their ecosystems.

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Environmental sustainability remains a challenge: only one-third of companies have taken steps to adapt to climate change or reduce their environmental footprint, according to ITC research presented by Floriana Borino of the ITC Strategies and Policies for Trade team.

“Attend to the SMEs because if we don’t take care of them, if we don’t nurture them, we leave cracks in our economic and social infrastructure,” said United Nations Resident Coordinator Stephen Jackson. “That could lead to undermining of our economic and social progress.”

Pamela Coke-Hamilton, Executive Director of the International Trade Centre, the joint agency of the UN and World Trade Organization, said: ‘This roundtable coincides with a landmark moment in ITC’s own history – the establishment of our first corporate office in Africa, right here in Nairobi.”

She added: “The timing is no coincidence. It’s because we have seen firsthand in our engagement throughout the East African Community and its partner states the deep commitment you each hold to ensuring connected, sustainable and inclusive trade.”

In closing the roundtable, EAC Deputy Secretary-General Annette M. Ssemuwemba said: “Every SME represented at this Trade Fair tells a story of courage, creativity and possibility. May the outcomes of this roundtable translate into action that delivers, financing that flows and partnerships that will endure.”