Reflections on SME resilience, inclusion, and transformation at the ITC Global Ministerial 2025 - Trade Treasury Payments

The first-ever Global SME Ministerial Meeting, co-hosted by the International Trade Centre (ITC) and the Government of South Africa, took place over three late July days in Johannesburg. It convened ministers, heads of delegations, development finance institutions, business support organisations, and entrepreneurs from more than 70 countries. 

The event ranged widely in scope – covering everything from procurement access to AI regulation – and included two days of what I can only imagine were spirited ministerial discussions on how to advance the economic inclusion of SMEs (sadly, I lacked the credentials to access these meetings, so must rely only on the resulting Call to Action document to support my claim). 

From all the excitement and varied discussions that took place, however, I walked away from the event with three main takeaways.

Finance gaps persist, but new tools are on the table

Access to finance remains the most persistent (and most widely acknowledged) barrier for SMEs across nearly every region. While the problem is not new, the urgency has grown. From rising interest rates to a concentration of venture capital in a handful of markets, many SMEs are struggling to secure the working capital they need to grow, decarbonise, or digitise.

Speakers throughout the week provided both macro and micro perspectives. South Africa’s own MSME funding gap is estimated at around ZAR 20 billion ($1.1 billion). Across Africa, less than 2% of global venture capital flows into a continent with over 18% of the world’s population. Yet the problem is not simply one of capital availability. As one panellist noted, “There’s capital in the system, but most SMEs don’t meet the terms.”

This has prompted a pivot toward solutions that address both sides of the financing equation: increasing the supply of appropriate capital and improving the bankability of SME borrowers. Unfortunately, this is a topic that is much easier to talk about than it is to put into practice. Some of the recommended interventions included blended finance structures to de-risk private lending, simplified credit readiness toolkits, and improved credit information systems. 

Several representatives also highlighted public procurement as a high-leverage instrument. Kenya, for example, has introduced a policy that reserves 30% of government procurement for marginalised groups, though the target has reportedly not been fully met.

Another recurring message was the need for enabling regulatory and policy change. One speaker rightly noted that “SMEs should thrive because of policy, not in spite of it.” That means implementing policies that simplify compliance procedures, ensure fair competition in procurement, reduce administrative burdens, and align with the realities of smaller firms. Without intentional efforts, even the best-intentioned support measures risk being out of reach for the very businesses they aim to serve.

Still, there was a palpable sense of momentum. The ITC committed to expanding its SME Trade Finance Toolkit and is in active discussions with development banks about scalable partnerships. What remains is the political will to convert proof-of-concept into national strategy.

Digital and green transitions are no longer optional

While finance may have been the main concern, the transitions to digital and green economies were equally high on the list of forces shaping the future of SME competitiveness. In both cases, the discussions were adamant that adoptation has become a matter of commercial survival.

On digitalisation, several country delegations raised concerns about widening disparities. In regions with limited broadband, digital public infrastructure, or technical training, SMEs risk being permanently excluded from modern trade ecosystems. Even in better-resourced contexts, digital readiness varies sharply between sectors and firm sizes.

That said, optimism was not in short supply. A number of success stories were shared (ranging from rural e-commerce hubs to smart logistics applications), but the consensus was that scale would require ecosystem investment. That means reliable connectivity, interoperable platforms, affordable devices, and training for both entrepreneurs and support institutions. 

On the green transition, the stakes were equally high. Export markets are increasingly demanding environmental compliance, and large buyers are cascading sustainability requirements down their value chains. Yet many SMEs lack the capacity to understand, let alone meet, constantly updating arrays of environment standards. Unfortunately for these resource-strained smaller businesses, companies that cannot demonstrate emissions data or circular economy practices may find themselves locked out of lucrative markets.

Recognising this, the Call to Action outlines a set of policy priorities: expand access to green finance, develop simplified ESG guidance, and support capacity building through local chambers and business support organisations. Several delegates advocated for clearer taxonomies and harmonised reporting frameworks, particularly for microenterprises. “We can’t ask a one-person shop to produce a climate report that looks like a multinational’s,” said one speaker. “We need scalable, practical tools.”

Regional trade can help SMEs grow and withstand global shocks

My third main takeaway from the Ministerial is that regional trade (especially within Africa) can help SMEs grow by opening nearby markets and building more resilient, local supply chains. Instead of relying heavily on distant global markets or exporting raw materials, countries could focus on producing and trading more finished goods within their own regions. The African Continental Free Trade Area (AfCFTA) is one example of a key tool to make this happen and to help more SMEs join cross-border trade.

Several participants referenced efforts to streamline customs processes, digitise trade documentation, and integrate SME-friendly rules of origin. The World Bank estimates AfCFTA could lift 30 million people out of poverty and increase African exports by $560 billion. Infrastructure featured prominently as well. South Africa outlined progress on the Lobito Corridor and Cape-to-Cairo route, referring to them as economic lifelines that, if managed inclusively, could support regional manufacturing ecosystems anchored by SMEs.

Still, access does not guarantee benefit. Without deliberate policy design, SMEs risk being bypassed in favour of larger firms. To that end, several panellists called for affirmative measures to include women-owned and youth-led enterprises in regional value chains. Others flagged the need for trade finance products tailored to cross-border SMEs, particularly in frontier markets.

Throughout the sessions, there was a growing awareness that regionalism and localisation do not need to be in tension with globalisation. By strengthening domestic capacities and creating resilient sub-regional ecosystems, countries can better weather global volatility while building competitive advantage from the ground up.

Final thoughts

Throughout the Ministerial and in the Call to Action, the ministers have committed to exchanging best practices, aligning policies, and resourcing the agenda, while the ITC has been tasked with convening technical meetings and measuring progress.

If the promises and commitments made in Johanessburg are to prove fruitful, then there is a promising future ahead for small businesses that trade. But of course, the real test of how effective the ministerial was now lies in the practical actions that are taken in the months and years ahead. After all, just talking about what needs to be done accomplishes nothing. Action is what matters.  

As the African proverb goes, “A roaring lion kills no game”