Cherinet: SMEs & start-ups the lifeblood of African economies

Africa is at a pivotal moment in its economic journey, with a focus on the pivotal role of small and medium-sized enterprises (SMEs) and start-ups in driving industrialization and economic growth across the continent. At the 2023 African Economic Conference held in Addis Ababa, Pazion Cherinet, CEO & Founder of OrbitHealth.co and Orbit Innovation Hub, shared insights on how SMEs and start-ups are the lifeblood of African economies. Cherinet emphasized the importance of reimagining industrialization in the context of the fourth industrial revolution, focusing on building capacity, talent, and skills to create an agile and inclusive economy. He highlighted that the future of industrialization lies in empowering start-ups and small businesses to drive innovation and growth. Cherinet raised concerns about the potential exclusion of millions of people if the focus remains solely on large conglomerates and industrial parks that rely on cheap labor. He emphasized the need for sustainable industrialization that elevates human capability and capacity, bringing economic benefits to a wider population. Cherinet pointed out the role of initiatives like the African Free Trade Agreement in expanding market opportunities for small businesses, promoting regional trade, and fostering collaboration. However, he noted that awareness, implementation, and readiness are key factors that need to be addressed to unlock the full potential of these initiatives. Despite the existing challenges, Cherinet showcased success stories of small businesses flourishing in sectors like clean water distribution and food delivery through innovative training and incubation programs. As Africa progresses towards industrialization, the focus on empowering SMEs and start-ups will be instrumental in driving economic development, creating sustainable growth, and improving livelihoods across the continent.