PM News, 23 June 2025
By Femi Fabunmi

EU commits €1.1 billion to boost AfCFTA as Job creation, MSMEs take centre stage

The European Union (EU) has committed about €1.1 billion to help the African Union (AU) implement the African Continental Free Trade Area (AfCFTA), a key agreement aimed at boosting trade across Africa.

This was announced by Mr. Massimo De Luca, Head of Cooperation at the EU Delegation to Nigeria and ECOWAS, during the 4th African Union MSMEs Forum in Abuja. He noted that access to finance remains a big challenge for businesses, especially Micro, Small, and Medium Enterprises (MSMEs).

According to De Luca, Africa must make better use of its informal sector or risk remaining in a cycle of underdevelopment.

“Our support of €1.1 billion is focused on helping the African Union make AfCFTA a success. This trade agreement is a major step toward realising Africa’s economic potential,” he said. “The EU is committed to partnering with Africa and ECOWAS for inclusive and sustainable development.”

Also speaking at the forum, Ms. Elsie Attafuah, the UNDP Resident Representative in Nigeria, said MSMEs are key drivers of growth and innovation across the continent. However, she stressed that these businesses need more than resilience — they need supportive environments, capital, and access to markets.

“MSMEs are the backbone of our local economies. To grow, they need working capital, platforms for innovation, and access to larger markets,” she said.

In a related development, Ambassador Afolabi Oke, Permanent Representative of the African Union Sixth Region Global (AU6RG) to Nigeria and ECOWAS, announced that Mr. Temitola Adekunle-Johnson, the Nigerian President’s Special Adviser on Job Creation and MSMEs, has also been appointed as Special Adviser to the AU Sixth Region on Job Creation and MSME Development.

“The AU6RG speaks for Africans in the diaspora. As part of the African Union, we aim to unite people of African descent outside the continent and promote African interests,” Oke said.

Mr. Abubakar Abba Bello, Managing Director of the Nigerian Export-Import Bank (NEXIM), also reaffirmed the bank’s support for MSME financing. He said boosting local production and strengthening the value chain are vital to achieving the goals of AfCFTA.

“We must focus on growing our value chains. Supporting MSMEs is key to the success of AfCFTA,” he said.