Plans secure affordable capital for SMEs

Arusha. Small and medium enterprises (SMEs) in East Africa can now access affordable capital from the financial institutions. This follows elaborate and clear supportive policy frameworks put in place to empower and promote them.

“Some East African Community (EAC) partner states are now enabling small enterprises to access capital,” said Kenya’s Cabinet Secretary for Industrialization, Trade and Cooperatives Peter Munya.

He made the remarks yesterday when opening the 19th edition of the annual EAC Jua Kali/Nguvu Kazi exhibition. He did not give statistics.

The fair, taking place in Eldoret, has attracted over 1,400 artisans from five EAC partner states; Tanzania, Uganda, Kenya, Burundi and Rwanda. The event is aimed to provide a platform for enhancing market linkages to SME products and sector product and services within the region.

The Cabinet Secretary said the member countries in the six nation bloc were now addressing challenges impacting on the growth and development of SMEs.

“The key component for the integration agenda is doing business together and expanding the market of EA as well as removing the barriers to trade,” he said.

Besides accessing the small enterprises with capital from the banks, the EA states were also putting in place mechanisms for accessing their SMEs to the markets.

EAC director general of Customs and Trade Kenneth Bagamuhunda said SMEs were engines of growth in the region. He added that the regional bloc was now putting more emphasis on the development of the informal sector which employed millions of people.

“Small enterprises are incubators of industrial growth in our region,” he said, adding that capacity building was going on for South Sudan to be roped into the fair. Mr Bagamuhunda said the ever-increasing participation of women in the annual event was enough illustration of the key role women play in business.