The FDRE Jobs Creation Commission, amongst other, is mandated Identify policy bottlenecks for Job Creation and propose alternative policies, Strategies and Legal frameworks. In accordance, the commission, for the past several months has been reviewing the Micro, Small and Medium enterprises development Strategy and has held consultative meetings with different stakeholders.

The strategy revision was started on January 2020 and comprised of a situation analysis, took international best practices into account and was thoroughly discussed with experts from Federal and Regional stakeholders.

The existing Micro and Small Enterprises development strategy was drafted in 2004 and revised in 2011 by the Ministry of Urban Development and housing aiming to create Job opportunities, to cultivate national Investors, to speed up and create equitable economic growth. Referring to the data from the Ministry of Trade and National Bank, with the implementation of the strategy, 1.5 Million Micro and Small enterprises were established, resulting in the creation of 5million Jobs from 2010 to 2018.

Despite this, the strategy lacked proper definition of Enterprises, Inclusiveness and Completeness, did not harness the capacity of the Private sector, lacked special support mechanism for enterprises with high growth potential and was not tending to the needs of the informal sector actors. In addition, the sector as a whole, has been severely hampered in terms of financial supply, consistent management, proper monitoring and evaluation system and equitable access to all sections of the society. This commanded the Commission’s attention to revise the strategy and the Policy and Strategy Analytics Directorate has been working on it since January 2020.

The newly proposed strategy will enable existing enterprises to strengthen, new enterprises to be formed and contribute to the country’s economy, and aims to alleviate the unemployment rate by create Job opportunities for citizens. The strategy will also facilitate a conducive environment for businesses, advance technology utilization and foster innovations, improve access to finance and market linkage, increase production and sales space, improve the quality of business development services, pay special attention to high-growth enterprises, and assist informal sector actors.

In addition, the new strategic directions is aimed to simplify administrative procedures by building the capacity of one-stop service centers and create an institutional coordination between the public & private sectors and develop more efficient financial systems and offer a variety of loan guarantee schemes to assist enterprises strive.

Once the Additional inputs from Key the Ministries and Governments institution are included and the new strategy is ratified, the implementation will be foundational tool for the commission’s plan of bridging the gap of 20 million jobs by 2030.

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