The health of the SME sector is a reliable reflection of the overall economic conditions in the country, according to the Managing Director of Hello Pay, Zunaid Miya.
Miya said the pandemic has led to SMEs facing long-standing challenges including high unemployment levels. The business expert said providing meaningful avenues for SMEs’ full financial inclusion is a necessary first step in the right direction.
He cites a recent IMF (International Monetary Fund) report which found that the importance of financial inclusion is recognised by policymakers around the world.
According to the IMF, SME financial inclusion is at the crux of shifting the economy away from a single income source toward multiple sources from a growing range of sectors and markets.
Miya said migrant workers also play an important role in the country’s sector.
“SA’s migrant workforce makes a sizeable contribution to the country’s economy. Estimates from an OECD report suggest this cohort of workers can increase South African income per capita by up to 5 percent.”
Miya said despite these statistics, migrant workers often face discrimination in terms of accessing services such as opening bank accounts or getting support for a business.
“Intelligent digital solutions, once only accessible to large enterprises, are now within reach for entrepreneurs and SMEs. It’s these solutions that allow SMEs to compete toe-to-toe with some of the best companies in South Africa.”
According to Miya, Hello Pay has committed to real and meaningful change in this matter. He said when pursued intently, financial inclusion generates economic growth, which in turn helps communities and individuals everywhere thrive.
“Financial inclusion means that thousands of SMEs and 350 million unbanked adults in Sub-Saharan Africa, according to the World Bank, can finally participate in economic activity,” said Miya.
BUSINESS REPORT ONLINE