SMEs and Poverty Reduction in Africa

There is no doubt that Africa is in a crisis of a different magnitude. With the COVID-19 national lockdown, many citizens lost their jobs without alternative means of livelihood. While unemployment continues to rise, the poverty level has also increased, with many small business enterprises being forced to close their businesses. As of May 2021, more than 50% of the global population were living in extreme poverty (people living on US $1.90 per day) and are domiciled in Africa (Saleh, 2021). By implication, Africa produces the largest number of poor people globally. Nigeria has the highest with 12.6%. One of the factors responsible for this is unemployment among the population. This is partly a manifestation of the weak industrial base that could provide job opportunities for citizens.