ALGIERS, Algeria, May 19. The Islamic Development Bank Group (IsDB) remains committed to empowering the micro, small, and medium enterprises (MSMEs) as part of its mission to foster economic development and social progress, the IsDB Vice President Rami Ahmad said, Trend reports.
Speaking at the panel discussion titled “Digital Solutions for Empowering MSMEs and Fostering Socio-Economic Development” as part of the bank’s annual meeting in Algiers, Rami Ahmad confirmed the day's agenda.
“The topic of our discussion today, digital solutions for empowering micro, small, and medium enterprises and fostering socio-economic development, is not only timely, but a necessary theme aimed at addressing development challenges facing our member countries," he said.
He emphasized that MSMEs play a critical role in achieving sustainable and inclusive growth.
“Empowering the MSMEs through digital solutions is a development prerequisite. It reflects our collective recognition that MSMEs are not only drivers of growth, but anchors of social stability and inclusion,” he added.
Ahmad noted that economic diversification is crucial for sustainable development and that digitalization is one of the main success factors for MSMEs in the face of global competition.
"Yet, the ability to scale and survive in an increasingly digital and competitive world depends heavily on a key success factor, which is access to appropriate digital solutions," he stressed.
Citing data, the VP said that in the Middle East and North Africa (MENA) region, small and medium-sized enterprises make up over 90 percent of all businesses, contributing up to 50 percent of employment and up to 70 percent of GDP in some countries.
"Digital transformation has become a critical enabler. It allows the MSMEs to access markets, reduce operational costs, enhance customer engagement, and build resilience, ranging from mobile payments, e-commerce platforms, cloud-based accounting, and digital supply chains. Technology is opening new frontiers for growth, inclusion, and competitiveness," he added.
The official also highlighted the crucial role of governments in building digital infrastructure, advancing e-governance, and integrating digital innovation into national MSME support strategies.
“With the emergence of artificial intelligence, we must work together to shift the goalposts. Governments and development institutions must work as one team, aiming at one goal, and the goal of bridging the digital divide in our societies.
Through initiatives such as the Technology Deployment Cooperation Program and the Herfati Program, we are helping our member countries to modernize MSMEs, provide them with access to financial services non-financial services, connect them to the markets, and build their capacity to compete in a digital economy.
Let us remember, empowering the MSMEs through digital solutions is not just a technological imperative. It is a development imperative. Otherwise, they will be left behind and we miss the boat on leapfrogging, capitalizing on this technology. It is about unlocking opportunities, creating decent jobs, lifting communities out of poverty, and delivering on our shared commitment to inclusive and sustainable development,” the IsDB official stated.
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