Peter Obi Advocates for SMEs as Key to Global Economic Growth at Bangladesh Conference
Dhaka, Bangladesh –
In a compelling address at a global conference organized by the Bangladesh Government in conjunction with the Commonwealth Enterprise and Investment Council, Nigeria’s 2023 Presidential candidate for the Labour Party, Mr. Peter Obi, emphasized the pivotal role Small and Medium Enterprises (SMEs) play in driving worldwide economic expansion.
Obi, the standard bearer for the Labour Party, expounded on how SMEs serve as the engines of growth, particularly in terms of job creation, innovation, and domestic investment. He presented his perspective supported by pertinent data, citing the World Bank’s 2020 statistics, which revealed that SMEs constitute approximately 90% of businesses and generate over 50% of global employment.
The former Anambra state Governor further highlighted the substantial contributions of SMEs in various economies, noting that in Bangladesh, they account for 40% of GDP, while in Nigeria and China, the figures rise to 48% and 60%, respectively. Additionally, he stressed that SMEs are responsible for the creation of seven out of every ten formal jobs in these countries.
Obi urged Commonwealth nations to prioritize the nurturing of small businesses, as they have demonstrated their potential to facilitate sustainable and inclusive growth and development across Commonwealth countries, which collectively house 2.5 billion people and hold over $1 trillion in exports.
Recognizing the challenges faced by SMEs, especially in developing and emerging markets, due to a lack of formalization and internationalization, Obi called for necessary reforms to address these issues. He advocated for the formalization of SMEs, involving registration and compliance with legal requirements, as a means to unlock their access to credit, markets, and government support, thereby stimulating innovation and growth opportunities.
Moreover, he highlighted the untapped potential within the Commonwealth, which controls a combined wealth of approximately $150 trillion, offering significant room for growth through investment in SMEs. Obi emphasized that these small businesses are essential drivers of economic development and poverty reduction, making formalization and internationalization pivotal for fostering innovation and enhancing competitiveness.
In a meeting with the Honourable Prime Minister of Bangladesh, H. E Sheikh Hasina, on the sidelines of the conference, Peter Obi congratulated her and her team for the nation’s achievements over the past 15 years, largely attributable to the support of SMEs. He noted that while progress had been made, there remained further work to be done.
Obi’s observations were corroborated by Mashrur Arefin, the Managing Director of City Bank in Bangladesh, who revealed that a remarkable 80% of job creation and a significant portion of the country’s growth could be attributed to SMEs. The transformation of Bangladesh’s economy, as evidenced by its GDP growth from $102 billion to $460 billion, with a reduction in unemployment and poverty rates, underscored the immense potential of SMEs to drive economic progress.
In conclusion, Peter Obi’s compelling address at the international conference underscored the importance of SMEs as catalysts for global economic growth, urging Commonwealth nations to harness their potential through formalization and internationalization, thereby propelling prosperity and innovation across the world.