ECA Concludes Policy Dialogue on Strengthening SMEs in North Africa

The Office for North Africa of the Economic Commission for Africa (ECA) recently concluded a two-day high-level policy dialogue in Rabat, Morocco, focused on strengthening small and medium enterprises (SMEs) across the region. The event marked the culmination of a two-year initiative led by the ECA Office for North Africa, which included a series of workshops designed to support women-led enterprises in Libya, Mauritania, Morocco, and Sudan. These workshops addressed critical issues such as access to finance, market dynamics, digitalization, and climate-related challenges.

Adam Elhiraika, Director of the ECA Office for North Africa, highlighted the significance of the discussions in creating a supportive environment for SMEs. He noted that the dialogue explored how policy measures could enable SMEs to play a greater role in North Africa’s economic transformation by enhancing resilience, improving access to finance, fostering sustainable growth, and leveraging opportunities provided by the African Continental Free Trade Area (AfCFTA).

The event brought together senior officials from Libya, Mauritania, and Morocco, who collaborated to identify strategies aimed at strengthening the resilience of North African SMEs in the face of economic and climate challenges. Key topics included the role of SMEs in promoting economic diversification and gender inclusivity, innovative financing solutions, climate adaptation strategies, and addressing policy barriers that impact productivity, innovation, and integration into global value chains.

Riad Mezzour, Morocco’s Minister of Industry and Trade, emphasized the essential role of SMEs in the economy, stating that they form the backbone of Morocco’s economic structure. He acknowledged that approximately 50% of SMEs survive their first five years, describing this as a positive indicator. Mezzour also discussed Morocco’s policies aimed at supporting SMEs, such as improving access to public markets, streamlining certification processes, providing favorable payment terms, and promoting environmental sustainability within the sector.

The discussions underscored the untapped potential of women-led enterprises in North Africa to drive economic growth, diversification, job creation, and inclusive development. However, numerous challenges remain, particularly regarding access to finance, property, markets, and business networks. These barriers often confine women-led businesses to smaller markets and the informal sector, limiting their opportunities for growth and trade.

During the dialogue, Eric Falt, Director of the UNESCO office for the Maghreb, highlighted the gender disparity in leadership within SMEs. He pointed out that while SMEs in Morocco account for 86% of formal employment, women lead only 15.3% of newly established enterprises, with just over 12% holding leadership positions.

The ECA, established in 1958 by the United Nations Economic and Social Council (ECOSOC), is one of the UN’s five regional commissions. Its mission is to promote economic and social development among its member states, encourage intra-regional integration, and strengthen international cooperation for Africa’s overall development.

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