In recent years, the focus on large corporations as the solution to Africa’s poverty has overshadowed the significant impact of micro-entrepreneurs in regions often overlooked by big businesses. Despite this, small enterprises can thrive in extreme poverty areas where larger businesses may not be able to access.

Programs aimed at addressing extreme poverty have been shown to be effective in transforming communities. Research demonstrates that by teaching business skills in these areas, household incomes can increase significantly, leading to a rise in annual household consumption and savings. Additionally, randomized control trials have found positive impacts on diet, health, and people’s ability to save for the future. The long-term success and scalability of these approaches have been highlighted by Shameran Abed, executive director of Brac International, and Esther Duflo of MIT.

The path to eradicating extreme poverty in Africa is not a singular one; it is as varied as the continent’s challenges and opportunities. A comprehensive strategy is necessary, one that integrates proven methodologies with the development of larger businesses to create a resilient and inclusive economic landscape across Africa.

Taddeo Muriuki, Chief Government Relations Officer at Village Enterprise in Nairobi, Kenya emphasizes the importance of recognizing the impact of smaller enterprises in addressing poverty and advocating for a comprehensive approach to development in Africa.