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.
MSME Aggregation and Growth Study
Associated resources
PDF II held a two-day capacity building training themed: “Capacity Building for Banks and DFIs”. This is designed to explore access to finance challenges, awareness campaigns, and opportunities that non-oil exporters face with banks in accessing finance. The capacity building covered topics such as Export Industry Regulations and Documentations, payment methods and trade finance instruments, Handling export finance options, managing export risks, understanding the franchising potential etc.
This study conducted by PDF with support from FCDO (formerly DFID) shows that women who engaged in cross border trade contribute to food security by trading food products from areas of surplus to areas of deficit. The paper reveals that depending on how this trade is organized, these women have the potential to contribute significantly to household earnings and resources. This empowers women by giving them financial independence and control of their own resources.
The Trade Policy Work Stream started out by conducting 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.
Respondents were further asked about what they would like to see if there is an opportunity for assistance with capacity building for export readiness and export market access. Each responded provided its top 3 areas of preference for capacity building. The findings from the overall assessment provided a guide on areas to address.
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.
This is a presentation from the second day of the Trade Associations capacity building titled – Strengthening the structure of Trade Associations in the Non-oil Export sector for better Governance and Leadership. It covers Member Relations & Communication, Advocacy and Stakeholder Management, Fundraising & Financial Management as well as Leadership & Corporate Governance.
The lack of improvement and deterioration in Nigeria’s export trade performance rankings such as measures of time and cost associated with exporting and importing a standardized cargo of goods reinforces the need for Nigeria to undertake urgent and extensive reform to improve its trading across borders performance. This research provides immediate, medium and long term reform options.
