Boitshoko Shoke
As we shake off the Christmas hangover, complete with the lingering crumbs of Choice Assorted Biscuits, and settle into 2025, we are called to embrace fresh opportunities with purpose and resolve. South Africa’s historic assumption of the G20 presidency offers just such an opportunity: a platform to rewrite economic narratives and shine a long-overdue spotlight on the unsung champions of economic growth: Small, Medium, and Micro Enterprises.
As Donald Trump assumes the presidency this week, the geopolitical landscape is undergoing significant shifts, bringing economic priorities into sharp focus. South Africa stands poised to amplify Africa’s voice and ambitions on the global stage.
For the first time, Africa has a chance to shape the G20 agenda from a uniquely African perspective, making this presidency a milestone of immense responsibility. SMMEs, the lifeblood of economies worldwide, represent over 80% of businesses across the continent. In South Africa alone, they employ 60% of the workforce, a pattern echoed across various G20 nations, from Indonesia's bustling markets to India's innovation hubs.
Yet, despite their indispensable role in alleviating unemployment, poverty, and underdevelopment, they remain marginalised in global economic discourse. Constrained access to finance, burdensome regulations, and widening digital disparities continue to stifle their growth.
South Africa’s G20 presidency under the theme “Solidarity, Equality, Sustainability” offers a transformative opportunity to address these inequalities by embedding SMMEs into the heart of G20 discussions. At the forefront of this vision is their integration into task forces tackling inclusive growth, industrialisation, and job creation.
SMMEs must also be recognised as drivers of innovation, particularly in emerging fields such as AI and data governance, where their potential to bridge digital divides cannot be overstated. South Africa could champion practical solutions, including affordable financing mechanisms tailored to the needs of SMMEs and partnerships that connect them to global value chains. Leveraging initiatives like the African Continental Free Trade Area (AfCFTA) could reduce trade barriers and enhance SMMEs’ export readiness.
The urgency of this agenda cannot be overstated. The world is grappling with overlapping, widely known crises such as climate change, inequality, technological disruption, and political unrest, all of which demand coordinated global action. As the world reaches the halfway mark since adopting the 2030 Agenda and the Sustainable Development Goals (SDGs), the Sustainable Development Goals Report 2024 highlights a troubling reality: only 17% of the 169 assessable targets are on track for 2030, with most showing deviations, stagnation, or regression.
The 2024 Africa Sustainable Development Report, prepared by the African Union (AU), African Development Bank (AfDB), United Nations Economic Commission for Africa (UNECA), and United Nations Development Programme (UNDP), reveals that just 6% of the 32 measurable SDG targets in Africa are on track, though strides have been made in access to drinking water, sanitation, climate policy, and statistical systems.
In South Africa, the Sustainable Development Goals: Country Report 2023 by Statistics South Africa (Stats SA) shows mixed progress. Advances in education, healthcare, water, sanitation, electricity, and gender equality contrast with persistent challenges in poverty and inequality, exacerbated by the COVID-19 pandemic. Key challenges include:
– SDG 1: No Poverty – Social assistance programmes have helped, but poverty remains widespread.
– SDG 5: Gender Equality – Despite a strong legal framework, violence against women is prevalent.
– SDG 10: Reduced Inequalities – Systemic disparities continue to hinder progress.
– SDG 13: Climate Action – Stronger climate resilience and action are needed.
– SDG 16: Peace, Justice, and Strong Institutions – Governance challenges, including corruption, undermine trust and justice.
In this context, South Africa’s presidency comes at a critical juncture. SMMEs are uniquely positioned to play a pivotal role in advancing these goals. These enterprises can drive climate action by adopting sustainable practices, reduce inequality by creating jobs in desperate communities, tap into technology to enhance access to essential services and promote stability by promoting grassroots economic empowerment.
This explanation may seem straightforward and, to some, overly simplistic; however, it truly is that simple. Consider the transformative impact of Kenya’s solar energy sector, where homegrown companies such as Go Solar have provided affordable solar power to millions of off-grid households, addressing energy poverty and climate goals simultaneously.
Similarly, India’s microfinance-supported, women-led SMMEs have lifted thousands out of poverty by creating income opportunities and empowering communities. These are just a few examples that highlight how SMMEs can act as transformative agents, demonstrating that empowering small businesses can yield meaningful and scalable solutions to global challenges.
South Africa’s G20 presidency presents a unique opportunity to reshape the global narrative on SMMEs, positioning them as key drivers of sustainable development rather than peripheral actors in policy discussions. By embracing the transformative vision of the 2030 Agenda, South Africa can ignite impactful progress, fostering growth and resilience not only across Africa but globally. As the world watches, this is a moment to champion inclusive and sustainable economic practices, ensuring that no one is left behind. The success of this endeavour could serve as a lasting legacy of South Africa’s leadership on the global stage.
Boitshoko Shoke is the Research and Impact Manager of 22 On Sloane, Africa’s largest entrepreneurship campus.
BUSINESS REPORT