Kenya, among other Sub-Saharan economies, need to develop stronger supply chains locally and regionally to become more competitive, think-tank Mckinsey & Company has advised. Governments can encourage more small businesses to enter the formal economy by generating market access schemes for MSMEs, the firm says. For example, the state can strengthen government-guaranteed offtake schemes and incentivize large companies to integrate MSMEs into their supply chains. “Governments’ support to businesses during the crisis might translate into more active industrial policy and intervention in years to come,” Mckinsey notes. This includes ramping up operating efficiency where companies need to look for ways to reduce cost and improve productivity—both during the downturn and in the recovery.

Source: The Star June 03, 2020 00:56 UTC