SA Backs G20 Working Group to Empower MSMEs and Startups Globally

In a pivotal move toward inclusive global economic growth, Minister of Small Business Development, Stella Ndabeni, announced South Africa’s commitment to champion the formation of a dedicated G20 Micro, Small and Medium Enterprises (MSMEs) and Startup Working Group. The announcement was made during her keynote address at the inaugural Global SME Ministerial Meeting held in Ekurhuleni on Wednesday, positioning South Africa as a key advocate for global MSME empowerment.

A Call for Institutional Recognition of MSMEs

Currently, MSMEs are represented in the G20 through the Startup20 Engagement Group—an advisory body that influences G20 policies. However, Minister Ndabeni argued that this representation must be formalized and expanded.

“We are advocating for the establishment of a dedicated G20 MSME and Startup Working Group to be formally included in the G20 declaration in November. Let this be one of the key legacies of our collective efforts as we make history,” she urged.

This proposed working group would serve as a platform to integrate MSMEs and startups into core G20 policymaking, providing them with much-needed visibility, influence, and access to global resources and markets.

MSMEs: Anchors of Community and Innovation

Ndabeni highlighted that MSMEs are far more than economic participants—they are foundational to inclusive growth, community resilience, and innovation. She emphasized that these enterprises thrive in rural and marginalized areas, acting as crucial engines for job creation and poverty alleviation.

“They generate livelihoods in the places where people live, particularly in townships and rural areas. But they are also vulnerable—especially if not equipped to meet global standards and digital transitions,” Ndabeni noted.

She called on fellow ministers and global delegates to share best practices, forge new partnerships, and collectively reshape MSME policy ecosystems across developing and least-developed countries.

Addressing Structural Inequities in Global Finance

One of the most pressing challenges discussed at the meeting was access to capital. While fintech innovation has enabled millions of MSMEs to join the formal financial ecosystem, Minister Ndabeni pointed out the stark funding disparities that still exist—particularly for African entrepreneurs.

“Africa holds 18% of the world’s population but receives less than 2% of global venture capital flows,” she revealed. “This capital vacuum pushes African entrepreneurs to tech hubs abroad to register and commercialise their innovations—an economic leakage that must be addressed.”

South Africa, despite its efforts to de-risk lending through guarantees and blended financing models, still faces a $20 billion MSME funding gap. Minister Ndabeni stressed that the private sector, development banks, and global partners must work together to mobilize financing that is affordable, accessible, and inclusive.

Toward a Bold Global Compact for MSME Development

In what was widely regarded as a rallying call, Ndabeni called for the creation of a new global compact that would not only expand capital access but also deepen digital inclusion, open market opportunities, and empower women, youth, and underserved communities as active economic agents.

“This ministerial meeting must mark the beginning of a bold new global compact for MSME development—one that ensures that women, youth, and underserved communities are not spectators, but architects of economic transformation.”

She also warned of the rising risks from global trade protectionism, which disproportionately impacts MSMEs, especially in smaller economies. Ministers were urged to confront these issues with pragmatic and cooperative solutions.

A Vision for Inclusive Global Growth

The Minister’s remarks underscored South Africa’s determination to reposition small businesses at the center of national and global economic discourse, transforming MSMEs and startups from policy footnotes into strategic cornerstones.

As the world looks toward the G20 Summit in November, South Africa’s proposal for a formalized MSME and Startup Working Group has the potential to reshape the way the global economy nurtures its most dynamic and diverse contributors.