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Financial sector reforms give boost to African entrepreneurs
ACCORDING to the CEO of the African Management Services Company Ayisi Makatiani, SME's in Africa are enjoying better access to finance from banks, venture capitalists and other sources.
But for these businesses to really grow into world-class organisations they will also need training and management support.
The financial reforms of recent years are starting to pay off for most African countries. As the recent World Bank report "Making Finance work for Africa" shows, most of the continent's economies are recording robust growth, which has led in turn to lower inflation and better fiscal discipline.
Banks have extended their activities, offering products and services to new markets such as the rural poor, microbusinesses and SMEs. These developments are welcome in a continent where many would-be entrepreneurs have found their ambitions constrained by poor access to capital in the past.
Clearly, SMEs need knowhow as much as they need money if they are to tackle these challenges. One possible solution is for SMEs to recruit experienced hands-on management from abroad who are able to mentor and train their staff so that they can build skills throughout their businesses.
A thriving SME market segment is the key to developing prosperous African economies, and are the ideal vehicle to ensure that newly created wealth in growing African economies cascades down to those who need it most.
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