Africa Small Business Growth Programme Launch

The Small Business Growth Program presents an innovative response to Africa’s ongoing challenges of unemployment, economic exclusion, and humanitarian dependency. The program aims to empower informal and small businesses—especially spaza shops and women-led enterprises—by equipping them with digital tools, targeted training, and transparent support systems, thereby fostering sustainable local job creation and economic resilience.

Background

Traditional humanitarian efforts in Africa have often prioritised immediate relief measures, such as food aid and access to water, but these can lead to long-term dependency. The Small Business Growth Program advocates for a paradigm shift: instead of focusing solely on short-term relief, it aims to build local capacity for self-sufficiency by nurturing entrepreneurship and job creation. This approach acknowledges that the informal economy is the largest employer in sub-Saharan Africa, accounting for 90% of new jobs and 70% of total employment, yet contributing less than 40% to GDP due to low productivity and limited access to formal support.

Small businesses, particularly spaza shops, are vital to township and rural economies in South Africa, with over 150,000 operating nationwide and providing essential goods, services, and jobs. However, these enterprises face significant barriers, including limited access to finance, regulatory constraints, inadequate infrastructure, lack of support networks, and skills gaps. Women entrepreneurs, who own 58% of SMEs in Africa, are particularly affected by socio-cultural and economic challenges.

Program Objectives

The pilot program’s objectives are to:

1. Identify and support committed local entrepreneurs, focusing initially on spaza shops and women-led businesses.

2. Develop and test best practices for digitalisation and business growth.

3. Increase access to markets for locally produced goods.

4. Foster a supportive entrepreneurial community.

5. Ensure full transparency in fund deployment through blockchain-based systems.

6. Enhance business growth, job creation, and economic resilience in participating communities.

Monitoring, Evaluation, and Scalability

The program utilises real-time data collection and analytics to track progress, measure outcomes, and deliver actionable insights to participants and partners. Key metrics include sales data, stock levels, and business growth indicators. This data-driven approach ensures transparency, accountability, and the potential to scale successful interventions.

Following a successful pilot, the program intends to expand to other small business sectors and regions, initially within the Free State and subsequently nationwide, with the ultimate goal of rolling out the model across Africa.

In summary, the Small Business Growth Program offers a scalable, technology-driven solution to unlock the potential of Africa’s informal sector. By addressing systemic barriers, fostering entrepreneurship, and ensuring transparency, the program aims to catalyse inclusive economic growth and sustainable development across the continent.