GIZ moves to enhance MSMEs’ competitiveness through industrial clusters

The Sustainable and Inclusive Economic Development for Decent Employment In Nigeria Programme (SEDIN) – an initiative of the German Development Agency (GIZ), has announced plans to help micro, small and medium enterprises (MSMEs) to be competitive and scale-up through industrial clusters development.

Toyin Craig-Adeniran, led advisor, GIZ-SEDIN, said the initiative which will leverage public-private partnerships will focus on five key areas which include environmental sustainability, gender equality, combating climate change and ensuring access to sustainable infrastructure to enhance the growth and sustainability of industrial clusters.

Adeniran who made this known at a stakeholders’ forum on ‘Industrial Cluster Development Addressing Infrastructure and Service Gaps in Business Clusters in Lagos’, said industrial clusters are relevant in driving MSMEs growth owing to their ability to increase their productivity with which they can compete, nationally and globally.

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She listed some of the benefits of clusters for MSMEs to include access to infrastructure development, tech adoption, better skills, opportunities for networking and market linkages.

She noted that clusters consist of various actors, resources, and activities that are combined for the development, manufacture, and sale of different types of goods and services.

According to her, clusters promote risk sharing, joint analysis of ideas and initiatives and a platform for a possible exchange of experience and specialized workers that support MSMEs growth and stability.

Akinropo Omoware, head of component business environment reforms, investment and infrastructure, GIZ-SEDIN in his presentation said the programme key approach in driving competitiveness for MSMEs across the selected states – Lagos, Edo, Niger, Ogun, Plateau and FCT would involve building their capacity and facilitating access to finance, market and addressing infrastructural gaps.

For enhancing MSMEs stability, he said facilitating access to green technology, finance, and adoption approach will make a great impact, adding that building capacity of cluster managers and MSMEs on ESG approach will be adopted.

According to him, the SEDIN -IV programme which will run till July 2026 will focus on 60 clusters and 47,708 MSMEs across selected states for the initiative.

Speaking on the stakeholders forum, he noted that the forum is an interactive discussion, and group exercises to facilitate learning and knowledge exchange.

He added that it would help deepen participants’ understanding of infrastructural issues and changelings confronting cluster development in Lagos.