Notes
- MSE Development is part of an overall GOE policy target that aims to raise manufacturing as a percentage of GDP from the current 4%. The main implementing agency is Ministry of Trade and Industry. MUDHCo’s responsibility for urban based MSE development is implemented partly through Federal Micro and Small Enterprise Development Agency (FeMSEDA) which falls under the Ministry’s authority and partly through the urban local governments (ULGs) who register MSEs and provide serviced land and buildings to support MSEs.
- It is proposed to link MSE, small and medium enterprise development more clearly with Ministry of Trade and Industry in order to gain benefits from linkages with the larger industrial sectors (leather, etc.).
- Pillar 2 is the only pillar for which the main federal implementing organ is not MUDHCo. It is the FeMSEDA which has regional and local operating and organizational capacity.
Background: The launch of the urban based MSE initiative took place in the second national plan[1] (2005/06-2009/10) through the Ministry’s Urban Development Package that integrated five initiatives: Pillar 1: Micro and Small Enterprise Development Programme; Pillar 2: Integrated Housing Development Programme; Pillar 3: Youth Development Programme, Pillar 4: Development of Land, Infrastructure and Services; and Pillar 5: Rural-Urban and Urban-Urban Linkages. The Urban Development Package was implemented in parallel with the Urban Good Governance Package that contained seven sub-programs. The MSE pillar was further developed and extended during GTP I and integrated with many other initiatives to strengthen, fund, support and transition successful MSEs into small, medium and larger enterprises. This process now moves into a third phase in GTP2 as a substantial contribution to economic transformation.
The Vision for Micro and Small Enterprise Development is to create “a competitive and effective foundation for industrial development.”
The main objectives of MSE development are:
- Through the creation of job opportunities, to bring equal opportunities for development, improving incomes and reducing poverty within society;
- To enable the MSE sector to achieve competence, facilitate economic growth and lay the foundation for development of industry; and
- To expand MSE development in urban areas by creating and enabling investment in MSE development.
Linkages: Pillar 2 is closely linked to: Pillar 1: Transformational Leadership Development and Pillar 3 Urban Development Good Governance and Capacity Building that will provide the policies, laws, regulations, resources, systems and human resource capacities to support MSE development. These include the M&E and MIS systems to monitor, evaluate and report on performance and achievement of benchmarked targets. Pillar 4. Urban Planning, Land Development and Management is critical in providing the spatial planning framework – at national, regional and city levels – and the serviced land to meet demand for micro, small, medium and large industry including associated housing, commercial, recreational and primary infrastructure.
[1] Plan for Accelerated and Sustained Development to End Poverty