Yaounde, 29 November 2024 (ECA) – “CAR's rapid ratification of the AfCFTA agreement demonstrates the government's commitment to trade integration, which aims to use the country's natural resources (timber, cotton, diamonds) to promote economic diversification and resilience through local processing and value-addition” said Thierry Patrick Akoloza, Minister of Trade and Industry of the Central African Republic.
Connecting CAR's SMEs to regional value chains is a guarantee of value-added creation, job creation and thus the generation of shared sustainable growth. The joint UNCTAD and ECA project aims to develop a data collection tool and a training program to help build the production and export capacities of Central African SMEs. By way of illustration, the project plans to improve the business environment through new-generation special economic zones to increase production capacity and provide a trade information platform to connect SMEs to markets and provide essential data such as prices, demand zones and supply chains. To enhance the competitiveness of SMEs, the focus will be on high-potential value chains. Difficulties encountered by SMEs in accessing finance can be alleviated by networking SMEs with each other and with large companies or financial institutions.
According to Jean Luc Mastaki, ECA Director for Central Africa, “SMEs account for 90% of businesses and 60% of jobs in Africa, making them vital for GDP growth. Strengthening SME competitiveness requires supportive policies, infrastructure and financial mechanisms. By honing the talent of its SMEs, young people and women, CAR will reap the full benefits of the AfCFTA, promote structural economic transformation, and foster inclusive growth”.
Recognizing that women and young people form the backbone of many informal production activities, the joint UNCTAD-ECA project focuses on formalizing their participation and removing administrative, informational and financial barriers. By strengthening SMEs, particularly those run by women and young people, the project should generate employment opportunities and contribute to poverty reduction in CAR. These expected results depend on the successful implementation of project initiatives and the active participation of all stakeholders, including governments, financial institutions and the private sector.
At the project launch workshop in Bangui on November 21, Habiba Ben-Barka, head of UNCTAD's Africa section, insisted that “the project should enable CAR's SMEs to better position themselves on the national and regional markets, particularly in sectors such as agro-industry, renewable energies and transport/logistics services, which are brimming with real opportunities”.
Notes to Editors :
About ECA: Established in 1958 by the Economic and Social Council (ECOSOC) of the United Nations, ECA is one of the institution's five regional commissions, with a mandate to support the economic and social development of its member states, encourage regional integration and promote international cooperation for Africa's development.
Comprising 54 member states, the Economic Commission for Africa (ECA) plays a dual role as a regional body of the United Nations (UN) and as an integral part of the regional institutional landscape in Africa. More at www.uneca.org
About UNCTAD: The United Nations Conference on Trade and Development (UNCTAD) is a permanent intergovernmental body established by the United Nations General Assembly in 1964.
UNCTAD helps developing countries gain fairer and more effective access to the benefits of a globalized economy. It produces economic and trade analyses, facilitates consensus-building and provides technical assistance to help developing countries use trade, investment, finance and technology for inclusive and sustainable development. More at www.unctad.org
Media Queries
Zacharie Roger MBARGA - Communications Officer
United Nations Economic Commission for Africa
637, rue 3.069, Quartier du Lac, Yaoundé, Cameroon
Tel: (+237) 222504348
E-mail: zacharie.mbargayene@un.org
Issued by:
Communications Section
Economic Commission for Africa
PO Box 3001
Addis Ababa
Ethiopia
Tel: +251 11 551 5826
E-mail: eca-info@un.org