Micro Small and Medium-Scale Enterprises (MSMEs) are integral to the stimulation of developing economies as exploiting the full capabilities of MSMEs will improve trade competitiveness aimed towards achieving the objectives of the Africa Continental Free Trade Area (AfCFTA). PDF Bridge Programme recognises the role that MSMEs can play in the implementation of the AfCFTA; and is supporting the National Action Committee of the AfCFTA Secretariat by funding this study. The output from this study will contribute to the initiatives to prepare the country and its stakeholders to compete in Africa’s single market, resulting from the implementation of AfCFTA, which commenced in January 2021. The key objectives of the study are: to grow MSMEs and evaluate measures to scale up their production by addressing constraints, gaps, and requirements, to identify measures to aggregate MSMEs products to meet export demand in terms of quantity and quality, to review several approaches to address production capacity, production quality, and market access issues and from review of international best practices ascertain learning points in defining the optimal pathway for Nigeria and to recommend optimal pathway or a combination of pathways that could be employed for MSMEs aggregation, growth, productivity, quality standard and market access to improve Nigeria’s export potential and capacity in line with AfCFTA implementation timetable.
Associated resources
The Trade Policy Work Stream conducted a needs assessment to get direct feedback from export-oriented MSMEs, export-supporting government institutions, and export business service providers to ascertain the capacity gaps. The top 5 challenges highlighted by the respondents include lack of market linkages, lack of finance, lack of market intelligence, limited knowledge of destination country requirements, and Export documentation.
In response to their needs, TRD workstream designed a targeted capacity building for the non-oil export community of practice to address the knowledge and skill gaps through a 4-part Export Capacity Building (CB) Series. The following topics were covered in this sequence:
- Market Entry strategies (with case studies: Europe (EU), US, China)
- Raising Finance for Your Export Business
- Understanding Export Documentation
- Branding and Packaging for export
This is a study carried out to provide the management of YouWiN with an improved approach they can adopt to encourage women’s participation in the business plan competition. It was conducted in 2012 with the support of FCDO (formerly DFID). Based on the findings and lessons from the study, recommendations were made for consideration by the management of the YouWiN programme to increase the number of women participating, winning grants and running sustainable businesses under the Youth Enterprise with Innovation in Nigeria Programme (YouWiN!)
This study focuses on the determination of the impact of Nigeria’s textiles import restriction. Specifically, the study describes the structure of the global and Nigeria’s textile industries as well as the global value chain, and the policy environment surrounding the industry in a global and national perspective. It was conducted in 2013 with support from FCDO (formerly DFID).
Against a backdrop of falling oil prices, the Nigerian government has woken up to its economic vulnerability to oil-related disruptions. This underscores the need for diversification to non-oil exports. PDF Bridge supported the drive towards growing non-oil export by supporting under-represented non-oil exporters through three strands of work: strengthening Nigeria’s ability to trade beyond its borders through the Network of Practicing Non-Oil Exporters of Nigeria (NPNEN), an export mentorship programme, which links experienced exporters with new and growing export businesses; and training sessions for micro, small and medium-sized enterprises (MSMEs) intending to export non-oil goods were held on; Market Entry Strategies, Understanding export documentation, Raising Finance for Export, Branding, and packaging for export. In addition, Roundtables were held on;
- Addressing Barriers to Access to Foreign Markets – An analysis of Spices & Herbs, Textiles & Garments, and Leather Products;
- Analysis and Impact of Export Expansion Grant on Export Potential, Market Access and Export Competitiveness in Nigeria;
- Improving Market Access through Digital Trade and;
- Analysis of Potentials of Nigeria’s Services Sector for Economic Diversification, Employment and Foreign Trade;
- Diversification and Non-oil Export Opportunities for Nigeria States Post-COVID19 Study
Aba Industrial City is an aggregation of thousands of MSMEs and mass producers of industrial goods including garment and leather products. If properly harnessed, the mass production capacities of component clusters of AIC and similar models are capable of positioning Nigeria at a competitive advantage in the global garment and leather industrial space. In 2016, the Textile, Apparel, and Footwear sector contributed N2 trillion ($6.6 billion), approximately 2% of Nigeria’s total GDP, to Nigeria’s economy.
