At AU MSME Forum, Shettima urges integration of Africa’s informal economy

By Kunle Sanni –

Vice President Kashim Shettima has urged African countries to prioritise the integration of the continent’s vast informal sector into formal intra-African trade frameworks, describing it as critical to unlocking sustainable prosperity for millions.

Speaking in Abuja on Monday at the opening of the 4th African Union Micro, Small and Medium Enterprises (MSMEs) Forum, Shettima warned that Africa risks repeating cycles of economic stagnation if it fails to harness the potential of its informal economy, which accounts for nearly 90% of its workforce.

“The promise of Africa’s future lies not in skyscrapers or stock exchanges but in tapping the enormous potential of our informal sector,” he told delegates from across the continent. “There can be no African prosperity without a strong MSME ecosystem. This forum is our continental call to action.”

The Vice President noted that Nigeria is deepening investments in MSMEs, which contribute about 48% to the country’s GDP and employ over 84% of its workforce.

He acknowledged that access to finance remains a major challenge for small businesses but expressed optimism that the African Continental Free Trade Area (AfCFTA) could serve as a catalyst for cross-border trade and economic inclusion.

Shettima highlighted the rapid adoption of digital technologies across Africa as a positive development for MSMEs and called for stronger digital infrastructure and regulatory frameworks to support growth.

The forum, themed “Building Resilient MSMEs through Digital Innovation, Market Access & Affordable Financing for Africa,” gathered policymakers, development partners, entrepreneurs, and representatives of financial institutions.

The event is jointly organised by the African Union’s Department of Economic Development, Trade, Tourism, Industry and Minerals (ETTIM) and the Federal Government of Nigeria.