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JOHANNESBURG — The Southern African Development Community (SADC) has put small and medium enterprises (SMEs) at the centre of its push for industrialisation and deeper regional integration, as ministers, business leaders and development partners met in Johannesburg this week to turn strategy into action.

At the two‑day High‑Level SMEs Public‑Private Dialogue Forum held from 2–3 February, delegates moved beyond broad commitments to map practical steps for implementing the SADC SME Development and Competitiveness Strategy (2025–2029). The gathering brought together government officials, private‑sector representatives, financiers and technical partners to identify immediate interventions that can raise productivity, expand market access and integrate SMEs into regional and continental value chains.

SMEs, backbone and blind spot: Speakers at the forum reiterated a familiar but urgent point: SMEs dominate the region’s business landscape yet remain under‑represented in cross‑border trade. Regional figures presented at the meeting underline the sector’s weight — contributing a large share of GDP, accounting for the majority of registered businesses and supplying most jobs, particularly for youth and women. Despite this, many small firms struggle to meet standards, access finance, or scale into regional supply chains.

SADC Deputy Executive Secretary responsible for Regional Integration, Angèle Makombo N’tumba, urged member states to adopt diversified and innovative approaches to strengthen SME operations, describing the sector as “the backbone of SADC’s industrialisation.

”The Strategy, she said, is intended to harmonise regional action on policy reform, skills development, technology and infrastructure, market access and finance.

From policy to pipelines: The forum’s practical focus produced a shortlist of priority actions. Delegates called for solution‑oriented financing — including blended finance and credit guarantees — to reduce lending risk and expand working capital for small firms. They also urged accelerated harmonisation of standards and quality infrastructure so that SMEs can meet buyer requirements across borders.

Business leaders highlighted sectoral opportunities that could be scaled region‑wide. Targeted support for textile and agro‑processing value chains, supplier development programmes with large corporates, and digital platforms to link producers with buyers were among the concrete proposals tabled. The African Continental Free Trade Area (AfCFTA) was flagged as a major market opportunity, provided SMEs can be helped to meet regional procurement and quality thresholds.

Why public‑private collaboration matters: The forum underscored a simple logic: governments set the rules, but private actors know the markets. When regulators, banks and business associations work together, reforms are more practical, financing instruments more tailored, and market linkages more reliable. That alignment can lower compliance costs, unlock blended capital, and create predictable demand for SME products — all essential for scaling firms from local traders to regional suppliers.

Speakers also stressed the social dividend of a thriving SME sector. Greater SME competitiveness translates directly into jobs for young people and women, helping to tackle unemployment and deepen inclusive growth across the region.

Challenges and the road ahead: Despite the momentum, delegates acknowledged persistent hurdles. Non‑tariff barriers, uneven standards, limited digital infrastructure and a shortage of targeted technical assistance remain stubborn constraints. Closing those gaps will require sustained political will, coordinated financing and measurable national action plans tied to the regional Strategy. The forum concluded with a call for intensified technical assistance, improved access to finance and stronger policy advocacy — a compact of commitments intended to move the Strategy from paper to pipeline.

For SADC, the test now is delivery: turning regional consensus into national reforms, bankable projects and market linkages that let millions of small businesses grow, hire and trade across borders.

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