Kenya’s PS Susan Mangeni Champions MSME Integration into Global Value Chains at OECD Forum in Istanbul

 

By John Kariuki

Principal Secretary for the State Department of MSME Development, Susan Mangeni, delivered a high-impact address at the OECD Emerging Markets Forum in Istanbul, where she positioned Kenya as a continental leader in mainstreaming Micro, Small, and Medium Enterprises (MSMEs) into resilient, diversified global value chains (GVCs).

Speaking under the forum’s theme, “Making Connectivity Work for Resilient Global Value Chains,” PS Mangeni articulated Kenya’s robust policy architecture and strategic investment roadmap designed to elevate MSMEs from informal, localized operations into globally competitive enterprises.

“Africa is the world’s most dynamic emerging market—and Kenya is at the forefront of integrating MSMEs into inclusive and high-value global trade ecosystems,” she declared, outlining Kenya’s transformative efforts to empower small businesses as critical nodes in international commerce.

Mangeni emphasized Kenya’s early ratification and aggressive implementation of the African Continental Free Trade Area (AfCFTA) as a foundational pillar for MSME globalization. The National AfCFTA Strategy (2022–2027), she said, is already unlocking inter-African market synergies and amplifying cross-border value creation. She highlighted Kenya’s bilateral trade agreements with major economies—including the UK, EU, and the United States—as instruments of preferential market access, offering MSMEs competitive advantages on the global stage.

Mangeni spotlighted Kenya’s national rollout of county-level aggregation and industrial parks, purpose-built to drive sectoral value addition in dairy, leather, edible oils, and textiles. These parks, she noted, are being outfitted with state-of-the-art infrastructure and production capabilities that enable MSMEs to meet global standards in quality, sustainability, and traceability.

She also cited the government’s increased investment in Export Processing Zones (EPZs) and Special Economic Zones (SEZs)—notably Dongo Kundu and Konza Technopolis—as catalytic enablers for MSME integration into multinational value chains. Today, over 42% of enterprises operating within Kenya’s EPZs are locally owned, a testament to inclusive industrialization.

To bridge the skills gap, PS Mangeni showcased flagship programs such as the Exporters Academy and the Green Economy Youth Activation Program, which are developing a pipeline of globally oriented entrepreneurs and trade professionals. She also lauded Ajira Digital and the Kenya Startup Act, noting that these platforms are democratizing access to global digital economies, particularly for young, tech-driven MSMEs. Kenya’s reputation as Africa’s Silicon Savannah, she said, is being redefined by MSMEs tapping into international service and e-commerce markets.

Addressing the perennial challenge of MSME financing, the PS referenced the Hustler Fund and the SME Credit Guarantee Scheme as pivotal instruments in de-risking lending and mobilizing capital for growth-oriented enterprises. She also cited high-impact private sector collaborations, including Unilever’s supplier development initiative, which now sources over 70% of its inputs from local SMEs. These types of partnerships, she noted, are accelerating localization and fostering backward linkages across supply chains.

To ensure compliance with global standards, Mangeni underscored the role of Kenya’s regulatory institutions, including KEBS and KEPHIS, in equipping SMEs with the certifications and quality assurances required for export markets.

“From flower farms in Naivasha to tech hubs in Nairobi, our MSMEs are not peripheral—they are central to shaping the future of global trade,” PS Mangeni declared in her closing remarks. “Inclusive global connectivity begins at the grassroots, and Kenya is living proof that strategic policy, infrastructure, and innovation can elevate even the smallest enterprise to the world stage.”

The OECD forum convened global policymakers, private sector executives, and development financiers to reimagine trade resilience in a fragmented global economy. Kenya’s participation, through the voice of PS Susan Mangeni, reaffirmed its commitment to inclusive economic diplomacy and bottom-up globalization.

April 12, 2025