SMES VITAL TO AMPLIFYING HEALTHY TRADE, AS WELL AS PROSPERITY, IN AFRICA
TRADE, which accounts for just less than 60% of the global gross domestic product, is the pulse of the world economy.
There is a strong human component that comes through in the stories of great entrepreneurs creating growth and prosperity in their local communities. These locally grown businesses and the people behind them are ultimately what trade is all about.
One such entrepreneur is Sefa Gohoho-boatin, the owner of Eden ‘n’ Eve – a four hectare flower farm in rural Ghana – who was recently featured in Maersk’s award-winning The Heart of Trade campaign which promotes the company’s longstanding passion for trade through a series of authentic films celebrating the everyday entrepreneur of this world as the true hero of global trade.
Entrepreneurs like Gohohoboatin, who operate on the African continent, play a particularly important role, said Alastair Taylor, a UN Conference on Trade and Development (Unctad) capacitybuilding task force member, highlighting the importance of small- and medium-sized enterprises (SMES) operating in Africa and how they contribute vitally to intra-africa trade, as well as economic growth.
“Across the globe, SMES contribute to economic growth and job creation. According to Unctad, in developing countries SMES provide the majority (60 to 70%) of formal employment, and in sub-saharan Africa alone this figure increases to 80%.
“SME growth in Africa therefore has the potential to significantly boost economic conditions and, as the leading network of container logistics, we have a role to play in the constant drive towards further enabling entrepreneurs to trade,” he said.
“Winning the trust of the community and starting a flower farm in Ghana’s jungle was a challenge, but by overcoming infrastructure barriers I have been able to help the women of an underprivileged part of the country become masters of their land – and their pockets.”
The success of Gohohoboatin’s business is also very much dependent on supplies, such as fertilizer imports, and the annual orchid and heliconia harvest, amounting to 125 tons, being moved to markets in the Netherlands, Dubai and Nigeria.
“In addition, a well-developed infrastructure is also of importance, making sure that the goods are delivered to port terminals in time for easy export, otherwise it will be extremely hard for the businesses to operate. The infrastructure needs to be developed to get the produce to the port in time, otherwise, we can’t operate.” she said.
Kevin Taylor, the Ghana sales representative of AP Moller-maersk – a conglomorate with interests in logisitcs and energy – said infrastructure was key to stimulating free trade and supporting economic growth in Ghana.
“More trade will increase the revenues of Ghana’s import and export companies, which will lead to as much as a $1.1 billion (R15.5bn) rise in gross value added to the Ghanaian economy and as many as 450 000 new jobs.”
“Gohoho-boatin’s story really showcases what trade is all about. At the heart of trade are people: entrepreneurs, workers, producers, customers and consumers.
“Free trade simply acts as an amplifier and is helping these striving entrepreneurs to prosper in their work as well as helping countries to grow and connecting the world.”