The first Global SME Ministerial Meeting in Pretoria brought together leaders from over 50 countries to shine a spotlight on small and medium businesses as key players in building fair, green, and strong economies. They talked about making it easier for these businesses to get money, use new technologies, and trade better across borders. The meeting sparked hope and teamwork, aiming to help small businesses grow, create jobs, and shape the future of the global economy with fresh ideas and shared goals.
The inaugural Global SME Ministerial Meeting united leaders from over 50 countries to promote SMEs as key drivers of inclusive growth, innovation, and sustainable development. It emphasized improving access to finance, digital transformation, green practices, and fostering global partnerships to empower small businesses worldwide.
Pretoria recently hosted a gathering that signaled a turning point in international economic cooperation. Leaders, ministers, entrepreneurs, and policymakers from more than fifty nations converged at the inaugural Global SME Ministerial Meeting with a shared sense of purpose: to champion the role of small and medium enterprises (SMEs) as foundational pillars for inclusive growth, innovation, and sustainable development. As South Africa’s Deputy President Paul Mashatile addressed the assembly in his closing remarks, his words underscored not only the pride of participation but also the urgency of collective action.
The gathering fostered a spirit reminiscent of the great historical epochs where dialogue served as the bedrock of transformation, such as the Enlightenment or the dawn of the Industrial Revolution. Decision-makers engaged in vibrant exchanges on broad, interconnected themes—improving access to finance, embracing digital transformation, and advancing green business practices. These discussions did more than fill the agenda; they reflected a profound global recognition that SMEs are central to economic recovery and resilience in an era marked by uncertainty and rapid change.
For many, the stakes remain high. The aftershocks of recent global crises—pandemics, climate events, and geopolitical tensions—have tested the endurance of small businesses worldwide. Despite these challenges, the conference radiated optimism. Multilateral partnerships are reviving, with organizations like the United Nations, the International Trade Centre, and the African Union working alongside national governments to foster an environment where SMEs can flourish. These alliances are not merely bureaucratic gestures; they represent a commitment to overcoming the isolationism and protectionism that threaten global prosperity.
South Africa’s tenure as chair of the G20 comes at a moment when emerging markets and the Global South seek more substantial roles in shaping international economic norms. Heralding its presidency under the theme “Solidarity, Equality, Sustainability,” South Africa has emphasized the need for more inclusive economic narratives. Deputy President Mashatile highlighted how the Global SME Ministerial Meeting opened space for ministers and deputy ministers from Africa and other emerging regions to share their unique experiences and strategies. Such dialogues are poised to influence high-level forums, including upcoming G20 Summits, ensuring the voices of the Global South reverberate in global policymaking.
This week’s convergence between the G20 Startup Engagement Group and the ministerial assembly reflects a strategic desire to foster cross-sectoral synergy. The fusion of perspectives from policymakers and startup leaders enables the formulation of innovative policies that support youth, women, and historically marginalized groups. For example, South Africa’s Minister Stella Ndabeni advocated for establishing a dedicated G20 Working Group focused on small businesses and startups—a forward-thinking initiative that echoes the reformist spirit of past movements that fundamentally reshaped global economic and social structures.
The importance of these connections cannot be overstated. For decades, global economic frameworks have often overlooked the concerns and contributions of smaller nations and enterprises. The Pretoria gathering marked a pivotal shift, positioning SMEs and the regions they represent not as afterthoughts, but as central drivers of the world’s economic future.
Trade featured prominently in the deliberations, with the African Continental Free Trade Area Agreement (AfCFTA) capturing much attention. This ambitious accord, uniting 54 countries and over a billion people, holds the promise of an integrated African marketplace unprecedented in scope. Deputy President Mashatile expressed confidence that the AfCFTA would unleash untapped economic potential, transforming Africa into a cohesive trading bloc able to compete on the global stage.
Nonetheless, significant obstacles remain—particularly the chronic shortage of investment. Africa currently attracts only about 3% of global foreign direct investment, and the proportion flowing to startups and SMEs lags even further behind. This capital scarcity constrains the dreams and ambitions of countless entrepreneurs, especially as many face additional hurdles like currency volatility and inflation, which increase the cost of borrowing and undermine the stability needed for innovation and growth.
To address these challenges, delegates examined practical approaches to unlock new sources of financing for SMEs. Ideas included leveraging government-backed grants and credit guarantees to encourage private sector investment. Strengthening Development Finance Institutions also emerged as a priority, as these bodies can bridge the gap between international capital and local enterprise. By supporting MSMEs through regional banks and targeted funds, policymakers aim to create a virtuous cycle of growth and job creation.
The meeting also explored alternative approaches to credit assessment. In many economies, traditional collateral requirements exclude promising but asset-poor entrepreneurs. Innovative methods, such as using transaction histories, digital behavior, or community networks to evaluate creditworthiness, offer a pathway to greater inclusion. These tools, along with capacity-building programs that equip marginalized groups with vital business skills, form a comprehensive strategy for transforming informal enterprises into growth-ready businesses.
Digital technology has rapidly become both an enabler and a disruptor for SMEs across the world. FinTech solutions have lowered traditional barriers to financing, making it easier for entrepreneurs to access capital and scale operations. At the same time, the boom in e-commerce presents new risks: local businesses face stiff competition from inexpensive imports, and the rapid pace of technological change can widen existing digital divides.
Deputy President Mashatile and Minister Ndabeni repeatedly emphasized that true digital transformation requires more than passive adoption. African countries, and indeed all developing regions, must invest in building their own technological capabilities. Relying solely on imported solutions risks perpetuating dependency and missing the broader opportunities for innovation and value creation.
The assembly agreed that supporting SMEs in the digital age demands holistic policies. Investments in infrastructure, digital literacy, and research and development are essential. Equally important is the establishment of fair digital marketplaces that protect local industries while enabling them to compete regionally and globally. The rise of artificial intelligence, big data, and automation brings both promise and peril; delegates called for ongoing vigilance to ensure that these advances serve to broaden, rather than narrow, access to opportunity.
Above all, the Pretoria meeting underscored the power of partnership. Delegates forged new networks, shared lessons learned from both successes and setbacks, and pledged to build ecosystems where SMEs can thrive. Bilateral and multilateral collaborations emerged as critical building blocks for sustainable progress, creating frameworks that transcend borders and foster economic resilience.
As participants departed, they carried with them blueprints for reform and a renewed commitment to action. The Global SME Ministerial Meeting set a precedent, not just as a policy forum, but as a catalyst for rewriting the story of global enterprise. By placing SMEs at the heart of economic development strategies, the meeting signaled a new chapter—one defined by ingenuity, collaboration, and the relentless pursuit of inclusive prosperity. The decisions and connections forged here hold the potential to reshape economies, empower communities, and inspire generations of entrepreneurs well into the future.
The inaugural Global SME Ministerial Meeting aimed to spotlight small and medium enterprises (SMEs) as essential drivers of inclusive growth, innovation, and sustainable development worldwide. It brought together leaders from over 50 countries to discuss ways to improve SMEs’ access to finance, promote digital transformation, foster green business practices, and enhance global partnerships to empower small businesses and support economic recovery.
SMEs are foundational pillars for building fair, green, and strong economies. They contribute significantly to job creation, innovation, and community development. Especially in developing regions and emerging markets, SMEs stimulate inclusive prosperity by providing opportunities for youth, women, and marginalized groups and help build economic resilience amid global challenges such as pandemics, climate change, and geopolitical tensions.
The AfCFTA, uniting 54 African countries and over a billion people, promises to create an integrated African marketplace that can boost trade and economic growth for SMEs across the continent. It aims to unlock untapped potential by reducing trade barriers and increasing market access. However, challenges such as limited investment and financial access remain, which require targeted support to ensure SMEs fully benefit from this historic trade accord.
SMEs often struggle with limited access to capital due to traditional credit assessment methods requiring collateral, high borrowing costs, currency volatility, and inflation. The meeting explored innovative financing solutions such as government-backed grants, credit guarantees, strengthening Development Finance Institutions, and alternative credit scoring methods based on digital transaction histories or community reputation. These approaches aim to unlock new investment and foster inclusive growth.
Digital technologies, including FinTech and e-commerce, are transforming how SMEs operate by lowering barriers to financing and opening new markets. However, digital adoption also presents risks like increased competition from imports and widening digital divides. The meeting emphasized the need for countries, especially in Africa and other developing regions, to build their own digital capabilities, invest in infrastructure and literacy, and create fair digital marketplaces that protect and empower local SMEs.
International cooperation was a key theme of the meeting, highlighting that sustainable progress for SMEs depends on strong multilateral and bilateral partnerships. Organizations like the United Nations, the African Union, and the International Trade Centre, along with national governments, are working together to create ecosystems where SMEs can thrive. These partnerships help share best practices, mobilize resources, and align policies to support SMEs as central contributors to global economic development.
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