New research by Mastercard has highlighted the important role of government support in helping small and medium enterprises (SMEs) across the Middle East and Africa (MEA) to recover, position for growth, and contribute to economic prosperity.

In the inaugural Mastercard MEA SME Confidence Index, government support and implementation of effective policies was highlighted as ‘important’ by 88 per cent of the region’s SMEs, 50 per cent of which rated this point as a ‘must-have’ essential.

This sentiment was especially pronounced in the Middle East and North Africa (Mena) (92 per cent) and Sub-Saharan Africa (90 per cent) regions.

In addition to looking for effective regulatory support from governments, 92 per cent SMEs in MEA said they are also looking for support in upskilling of their teams, and 88 per cent highlighted the importance of improved telco infrastructure – pointing to opportunities to effect positive change in wide-ranging areas from education and skills development to systems and infrastructural progress.

Public-private partnerships are crucial for effective development and implementation of initiatives that advance financial inclusion and inclusive growth. To achieve this, governments and the private sector must play a joint role in enabling a safe and secure operating environment.

Mastercard works closely with governments and the wider business community to advance SME inclusion into the digital economy through tailor-made digitization strategies, cutting-edge technologies, insights, and policy advice.

Across MEA, 51 per cent of SMEs say government-led initiatives could have a positive impact in supporting their businesses. These include the UAE, where Dubai Government launched a third stimulus package to support small and medium enterprises maintain business continuity by reducing operational costs, while the Abu Dhabi Executive Council allocated AED3 billion ($820 million) to the SME Credit Guarantee Scheme. The Central Bank of Egypt made it easier for SMEs to access capital by encouraging banks to raise their share of loans to MSMEs. A six-month debt relief finance scheme for SMMEs was launched by the South African government, along with a spaza support scheme and an agricultural disaster support fund for smallholder and communal farmers.