Investing in Potential: Why Africa’s Youth Must Be at the Heart of Global SME Growth

In late July, I had the privilege of attending the Global SME Ministerial Meeting in Johannesburg—organized by the International Trade Centre in partnership with the Government of South Africa. What stood out was the deliberate effort by the African Leadership and Dialogue Institute (ALADI), supported by the Mastercard Foundation, to bring in young entrepreneurs from across the continent. This was more than just a seat in the room; it was an opportunity to lend our voices to the global conversation, to share the realities of what it means to run businesses as young Africans, and to highlight what we truly need to thrive. From financing gaps to cross-border trade barriers, the conversations reflected both the challenges and the possibilities that come when Africa’s youthful energy meets global trade ambitions.

The gathering was powerful: ministers, development partners, and global agencies all aligned on one clear reality—SMEs are the backbone of our economies, making up close to 90% of businesses worldwide and contributing at least 50% of jobs. In Africa, where entrepreneurship is the very heartbeat of daily life, this acknowledgment felt timely, urgent, and necessary.

But amid all the high-level commitments, one thought struck me deeply: Africa’s youth cannot remain missing in global trade conversations.

Africa’s Untapped Edge: A Young, Entrepreneurial Population

With the youngest population in the world, Africa holds something many other regions can only dream of—a generation brimming with creativity, hunger, and resilience. From my first interactions in the room, it was evident: young Africans are not waiting for change; they’re building businesses, driving innovation, and rewriting the narrative of possibility.

Yet, too often, these same youth are excluded from policy tables where the rules of global trade are set. This gap has consequences. It means policies and trade frameworks—from the African Continental Free Trade Area (AfCFTA) to digital transformation initiatives—look good on paper, but feel disconnected on the ground, where young entrepreneurs are hustling against bottlenecks like tariffs, logistics inefficiencies, and rigid regulations.

As one young founder told me during a side conversation: “We don’t just need policies that sound good in Geneva—we need policies that work in Goma, Lagos, and Nairobi.”

Challenges Young Entrepreneurs Face

While the SME Ministerial Call to Action rightly identified enablers such as access to finance, digital transformation, and green transition, for many young Africans, the challenges are sharper:

• Financial exclusion: The SME financing gap in Africa is over $330 billion. For young founders without collateral, bank loans remain a dream, and alternative financing is still underdeveloped.

• Policy exclusion: Decisions about the future are being made without those who will live that future. Youth-led businesses rarely have a seat at the table.

• Implementation gaps: Frameworks like AfCFTA hold promise but stall in practice due to fragmented regulations and high trade costs.

These hurdles keep young entrepreneurs in survival mode—when they should be scaling, hiring, and trading across borders.

The Lesson: Potential Must Be Invested In

One phrase kept echoing in my mind during the sessions: “If experience is rewarded, then potential must be invested in.”

Africa’s young entrepreneurs already have the vision, courage, and drive. What they need is an ecosystem that believes in them enough to invest early—through capital, mentorship, enabling policies, and access to markets. Because in a few years, today’s youth will be tomorrow’s ministers, CEOs, and policymakers. The question is: will they be ready and supported to lead?

The Way Forward

The Global SME Ministerial Meeting was more than a policy dialogue—it was a reminder that Africa’s future rests on how well we harness the energy of its youth.

• Governments must ensure youth representation in trade discussions and policy-making.

• Financial institutions must lower barriers and innovate around products that actually serve young entrepreneurs.

• Regional bodies must translate frameworks like AfCFTA from rhetoric to real, youth-accessible trade opportunities.

• Communities and networks must nurture young entrepreneurs with mentorship and cross-border collaboration.

If we get this right, the next generation of African SMEs won’t just survive—they’ll scale, trade globally, and redefine what inclusive prosperity looks like.

Because ultimately, Africa doesn’t just need more businesses. It needs young builders who are invested in, empowered, and unleashed to create lasting impact.

What’s your take? Should global trade forums include youth quotas or structured youth delegations to ensure young voices shape the future of SMEs?

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