Vice President Kashim Shettima says Africa’s future economic success depends on integrating the informal sector into formal intra-African trade through the African Continental Free Trade Area (AfCFTA).

Shettima stated this on Monday while declaring open the 4th African Union Micro, Small and Medium Enterprises (MSMEs) Forum in Abuja.

He warned that Africa would remain trapped in a cycle of despair if it fails to harness the informal sector’s potential for business growth.

He said the continent’s future does not depend on skyscrapers or stock exchange figures in capital cities.

Instead, it lies in unlocking the potential of the informal sector, which makes up nearly 90 per cent of Africa’s workforce.

He called for the informal economy to be integrated into formal intra-African trade to ensure meaningful economic progress.

The Vice-President explained that this is why small businesses are central to Nigeria’s economic policy planning.

“Your Excellencies, distinguished delegates, African prosperity requires a strong MSME ecosystem as a foundation,” Shettima declared.

He described the forum as a continental call to action, urging all to commit to integrating informal economies into structured trade systems.

He expressed hope that collective efforts from the forum would lead to meaningful change and empowerment of MSMEs across Africa.

“We aim to turn our shared aspirations into actions that empower MSMEs and drive Africa toward a sustainable future,” he added.

Shettima assured participants of President Bola Tinubu’s commitment to learning and collaborating with other African nations.

He emphasised the central role MSMEs play in Africa’s development and in lifting millions out of poverty.

He stated that MSMEs contribute 48 per cent to Nigeria’s GDP and employ over 84 per cent of its workforce.

“They reflect our future. This is why we are scaling up investments in this critical sector,” he said.

The Vice-President urged African nations to strengthen cross-border cooperation, noting that their destinies are interconnected.

He identified major challenges facing MSMEs, including limited access to affordable finance, which he described as a recurring nightmare.

However, he expressed optimism, saying AfCFTA offers renewed hope for the continent’s small business landscape.

“Our continent is losing momentum—not just money. AfCFTA gives us the chance to recover both,” Shettima stated.

He praised the forum’s theme: ‘Building Resilient MSMEs through Digital Innovation, Market Access and Affordable Financing for Africa.’

According to him, the timing is perfect, and the vision is clear and actionable for all stakeholders.

Shettima acknowledged the rapid rise of digital technologies across Africa, saying tech is doing what politics has failed to achieve.

He stressed that sustaining this momentum requires decisive and consistent actions by policymakers.

He urged them to invest in digital infrastructure, close literacy gaps, and avoid stifling regulations.

He regretted MSMEs’ continued reliance on traditional banks but noted promising progress through African fintech innovations.

He said fintech firms are now using alternative data to issue microloans and expand financial access for excluded groups.

Sen. Ibrahim Hadejia, Deputy Chief of Staff to the President, reaffirmed Nigeria’s support for thriving MSMEs across Africa.

Hadejia, Chairman of the Host Country Committee, said the forum reflects Africa’s shared vision of an inclusive, prosperous future.

He added, “This is about ensuring MSMEs do more than survive—they must thrive in the Africa we envision.

“It is a roadmap to unlock the potential of our continent’s most vital economic engine—our MSMEs.”

An investment in MSMEs, he said, is a direct investment in a resilient, self-reliant, and prosperous Africa.

The President’s Adviser on Job Creation and MSMEs, Mr Temitola Adekunle-Johnson, highlighted the forum’s importance for entrepreneurs.

He called for collaboration to harness Africa’s youthful population and transform the region’s economic landscape.

Director-General of SMEDAN, Mr Charles Odii, praised Vice-President Shettima’s support for Nigeria’s MSME growth and transformation.

Odii encouraged Nigerians to buy locally-made goods, stressing the importance of supporting home-grown businesses and manufacturers. (NAN)