The African Development Bank Group has approved a project to boost local content for micro, small, and medium enterprises (MSMEs) in Equatorial Guinea, providing economic diversification to the west-central African country.
The grant agreements were signed this week in the city of Malabo between the African Development Bank, the Ministry of Finance, Economy and Planning and the United Nations Development Program (UNDP), according to the press statement from AfDB.
The grant, from various Bank fund sources such as the Fund for African Private Sector Assistance (FAPA) and the Middle and Middle-Income Country Technical Assistance Fund (MICTAF), plus the UNDP contribution, will improve the business environment, provide unwavering institutional support to enterprise-supporting organizations and significantly enhance direct access by MSMEs to technical assistance and advisory services. Furthermore, it will facilitate access to large buyers of goods and services in different supply chains, amplify regional and global exports, and increase the linkages between MSMEs and financial institutions to create jobs, particularly for women and youth.
The project will be a multisector local content initiative focusing on agriculture, fisheries, transport/logistics, tourism, and ICT. It will emphasize youth-led and women-in-business MSMEs and be implemented by UNDP in partnership with the government of Equatorial Guinea and private sector players.
“The promotion of local entrepreneurship, the improvement of the capabilities and efficiency of the African MSMEs, the development of supply and value chains, and the increase of regional trade and exports are in line with the Bank’s core strategy and objective of supporting private sector development, particular the SME sector which represents the bulk of Africa’s economic fabric,” noted Aida Ngon, Director of Private Sector Development at the African Development Bank.
Serge N’guessan, African Development Bank Director General for West Africa, stated that SME development is an indispensable component of the private sector strategy. The bank is committed to addressing this issue comprehensively and collaborating with entities such as UNDP and local governments. This partnership aims to create and nurture high-growth MSMEs essential for sustaining economies such as Equatorial Guinea and other regional member countries (RMC) through job creation.
For her part, Betty Wabunoha, UNDP Resident Representative, noted that the “partnership between UNDP, the African Development Bank Group, and the government of Equatorial Guinea “aims to support the country’s economic diversification and development, particularly focusing on promoting sustainable growth and value chains with high growth potential.
The partnership seeks employment opportunities, especially for youth and women, by supporting micro, small, and medium-sized enterprises. This initiative will enhance the capacity of Equatorial Guinea’s institutions to facilitate economic transformation and inclusive development, and it will greatly contribute to accelerating Equatorial Guinea’s structural transformation toward green, inclusive, and resilient growth