UN MSME DAY 2024 Webinar: SMEs as a Key Driver for Climate Adaptation and Innovation in Africa

The webinar will highlight the pivotal role of small and medium-sized enterprises (SMEs) in driving economic growth and fostering innovation across Africa, particularly in the context of increasing climate-related challenges. The focus will be on showcasing how SMEs are becoming pivotal agents of change in climate adaptation and innovation. There will be a specific emphasis on such initiatives as the African Youth Adaptation Solutions Challenge (YouthADAPT Challenge). By engaging stakeholders supporting SMEs from across Africa, the scope will also delve into examples of other SMEs contributing to climate resilience efforts across the continent.

Event description

Climate change poses a significant threat to Africa’s development. However, SMEs are emerging as powerful forces for climate adaptation and innovation. Despite their positive impact on Africa’s development, SMEs continue to encounter significant and limiting challenges that hinder their sustainability and potential contributions to the continent’s progress. Consequently, their mortality rate across African nations is alarmingly high, with statistics indicating that five out of seven businesses fail within their first year. For instance, in Uganda, approximately one-third of new company start-ups collapse within their initial year of operations. Similarly, South Africa experiences a wide-ranging failure rate among start-up companies, ranging from 50% to 95%, depending on the industry.
 
SMEs are crucial to Africa’s economy. They fuel innovation, foster inclusive development, and provide job opportunities across the continent. According to Arya Devi in her 2023 article “SMEs Vital to Fuelling Innovation and Growth in Africa”, in 2023, SMEs made up around 90% of all businesses on the continent, generating roughly 80%of employment and contributing 40% to the continent’s GDP. Additionally, they play a pivotal role in connecting traditional industries with the digital economy by leveraging technology to create adaptable solutions and respond to evolving market conditions.
 
The rise of technology has become a driving force for change, empowering African SMEs to break through traditional obstacles and unlock their complete capabilities. Thanks to digital platforms, mobile connections, and e-commerce options, SMEs now enjoy unparalleled access to markets, resources, and information. Embracing technology allows these businesses to streamline their processes, boost efficiency, and expand their customer base far beyond local borders. Consequently, SMEs across Africa are increasingly harnessing digital resources to foster innovation.

The webinar objectives are the following:

• To highlight the significance of small and medium-sized enterprises in contributing to economic growth, climate adaptation, and innovation in Africa.
• To emphasize the growing importance of SMEs as key players in addressing climate-related challenges on the African continent.
• To showcase such initiatives as the African Youth Adaptation Solutions Challenge as examples of leveraging young entrepreneurs’ creativity for climate resilience.
• To examine the potential of SMEs as agents of change in climate adaptation and innovation in Africa.
• To explore the role of SMEs in fostering climate resilience and adaptation strategies across various sectors in Africa.

The call to action at the end of the webinar will be to:

• Support initiatives that empower young entrepreneurs in the climate adaptation space.
• Invest in capacity building for SMEs to develop and implement climate-smart solutions.
• Create an enabling environment for SMEs to thrive, fostering innovation and collaboration.