The 4th Meeting of the Working Group on Industrial Cooperation (WGIC) of the D-8 held in Bali, Indonesia on 10-12 November 2008, agreed that SMEs as one of the identified areas for cooperation under the industrial Cooperation of D-8. The 5th Working Group on Industrial Cooperation (WGIC) meeting held on 28  February 2010, in Tehran, adopted the  Terms of Reference of the Taks Force on SMEs as follows:

•To introduce various support programs in order to facilitate the growth and expansion of SMEs in different sub-sectors

•To nurture SMEs by providing institutional support, access to financial resources, business development services, and less business oriented regulatory environment, through a common supporting policy by the the Goverment of  the D-8 Member States

•To deliberate and identify constraints affecting SMEs including limited access to capital, low level of technology, limited access to markets and market information, shortage of business development services, inadequate infrastructure for technology, business incubation and cluster development center, regulatory and administrative challenges as well as inadequate infrastructure

•To formulate a uniform definition of SMEs in D-8 Member States, technology and business Incubators and their networking

•To develop data and statistical information as a basis for establishing measures to address all SME issues 

•To establish a D-8 Center for SME Support and Development, with the assistance of IDB and other international agencies 

•To utilize D-8 SMEs Training centers to be located in a Member States that willing to donate land and building

•To prepare  a directory of SMEs of D-8 Member States 

•To establish a Venture Capital and Credit Guarantee Funds: A SME Sector Development Fund (SMESDF) and a Guarantee Fund along with the lines of the Credit Guarantee Fund to assist the SMEs in identified thrust sectors of the respective D-8 Member States

•To set up a separate Micro Financing system to provide customized forms of finance for SMEs (special credit facilities, micro-credit schemes, seed capital, guarantee schemes, leasing, venture capital, concept of business angles) and other suitable forms

•To establish and strengthen linkages between universities, research organizations and industries

  • Background
  • Activities

1.        In line with the initiation of Task Forces under WGIC, the proposal to identify the TFs was raised during the Fourth Meeting of D-8 Working Group on Industrial Cooperation (WGIC) on 10-12 November 2008, Bali-Indonesia. 

After having and intensive discussion and exchange of views, the meeting agreed to strengthen future cooperation through Task Forces:

1.Automotive (Coordinator: Iran, Egypt, and Indonesia)
2.Energy, Power Sector and Conservation (Coordinator: Turkey, Nigeria)
3.Food production through Mechanization (Coordinator: Malaysia) 
4.Cooperation/Transfer of Technology (Coordinator: Turkey, Iran)
5.Petrochemicals and Fertilizer (Coordinator: Indonesia, Iran)
6.Cement (Coordinator: Iran)
7.Steel (Coordinator: Iran)
8.Textile (Coordinator: Egypt, Indonesia)
9.Standardization and Intellectual Property Rights (Coordinator: Turkey, Iran)
10.SMEs (Coordinator: Turkey, Indonesia, Iran, Nigeria)
11.Electronics and IT (Coordinator: Malaysia) 

During this meeting, the private sector of Indonesia, Turkey and Iran has signed a Minute of Meeting to facilitate cooperation through a long-term program on Automotive Industry. A joint working group will be established to develop the long-term cooperation.

2.        The Fifth Meeting of D-8 Working Group on Industrial Cooperation (WGIC) was held in Tehran, Iran, on February 28 – March 02 2010, back-to-back meeting with the First D-8 Ministerial Meeting on Industry. 

During WGIC meeting, all the delegations discussed and approved all the Terms of Reference (ToR) of 11 Task Forces as recommended on previous D-8 WGIC meeting. In addition, Plan of Action: Cooperation on Industry & Tehran Declaration on D-8 Industrial Cooperation was adopted by WGIC meeting. Meanwhile, at ministerial meeting, The Ministers adopted Tehran Declaration.

3.        As the one of coordinator Small Medium Enterprises (SMEs) under 11 Task Forces of D-8 WGIC, Iran Small Industries & Industrial Parks Organization (ISIPO) hosted the First D-8 SMEs Governmental Bodies Meeting of D-8 Member Countries on 06-07 December 2010 in Tehran-Iran with the idea to examine how to implement the agreements and deepen the ties between D-8 Member Countries.  In addition, the meeting has also considered that it is also timely opportune for D-8 governmental bodies to meet and discuss common efforts in responding towards the current potential market of D-8 SMEs. 

4.        As a follow up activity of the First D-8 SMEs Governmental Bodies Meeting of D-8 Member Countries on 06-07 December 2010 in Tehran-Iran, Iranian government held the SME Cluster Development Best Practice Workshop on 8-9 February 2011 in Tehran-Iran, which intended to familiarize the related persons from Member Countries with the concept and experiences of SME Cluster Development in Iran. The workshop commenced successfully with full participation from D-8 Member Countries and ECO. 

5.       Outcomes of the 5th D8 Governmental Bodies Meeting Held at Transcorp Hilton Hotel, Abuja on the 18th and 19th November, 2014.

The meeting among other discussed and recommended the followings:

•Challenges facing the SMEs are lack of ICT knowledge, poor business management, inability to formalise, multiple taxation, weak infrastructure, low access to finance, low market access, poor managerial skills, dearth of workspace. Low market access and others;

•Possibility of designating SME clusters as Priority Economic Zones (PEZ), interest sharing and guarantee by relevant government agencies, need for the convocation of SME annual conference coordinated by the D8;

•Need for SMEs to move towards sustainable enterprise using eco-friendly sources. This can be achieved through partnerships and alliance, which would accelerate the adoption of sustainable practices among member countries;

•Tackling SMEs knowledge and skill gaps in relation to green technologies, practices and business models and enhancing SMEs access to the emerging markets of environmental goods and services;

•Need for innovative ways to attract SMEs to go green and adopt renewable energy options thereby saving the environment;

•Enhancing private sector involvement in the development of SMEs;

•Upgrading database and statistics to reflect quality and quantity of the SMEs;

•Need a stronger synergy to exist between the Research and Development Institutions and MSMEs, leveraging on innovations to solve environmental; 

•Encourage technology on recycling & re-use of waste and to increase buy in through effective sensitization on SMEs products;

•Government intervention on interest rates to reduce risk on the banks and stimulate more lending to SMEs;

•Knowledge sharing on machineries on that could destroy undegradable materials; and

•Accelerate the creation of Industrial Parks for SMEs among the member countries. 

D-8 Organization has successfully held the 2nd Industrial Ministerial Meeting and 6th Working Group on Industrial Cooperation (WGIC) during 4-6 October 2011 in Istanbul, Turkey, to strengthen its industrial cooperation among member countries in order to find and secure opportunities for new investment and markets, with the recovery of the global economy continued robustly during the final months of 2010 and into early 2011.

D-8 has previously held its 1st Industrial Ministerial Meeting and the 5th Working Group on Industrial Cooperation (WGIC) in early 2010 in Tehran. At the Tehran Meeting D-8 has tried to utilize existing capacities in order to increase industrial cooperation within its ranks and improve its collective relative weight in the global industry. The “Tehran Declaration” provides a quite pragmatic approach to move in the direction of expanding industrial and technological cooperation amongst us. It also lays out a number of practical policies and measures towards increasing industrial and  market opportunities as well as financial resources.

This meeting designed to take stock of D-8’s collective performance thus far, analyze the situation with each and every Task Force it holds under the Working Group on Industry, and adopt a very objective and realistic approach to their future work, including with respect to the current mechanism of the coordination of Task Forces shared between and among a number of countries – which, in certain cases, might have not proved conducive to achieving the desired pace of dynamism and progress. The emphasize is being put on a number of Task Forces, for example Petrochemical/Fertilizer and Food Production Task Forces, which need to be accorded special attention, since they directly serve to increase food security for and within the D-8 community with almost 1 billion population and quite serious pockets of challenge in this field.

D-8 has had agreement with the Organization of Islamic Cooperation on a Memorandum of Understanding covering a wide range of areas of development-related activities, with special emphasis on agriculture and food security. In this special meeting in Istanbul, and at the margins of the Ministerial Meeting, D-8 has also signed M.O.U. with ECO (Economic Cooperation Organization).

Outcomes of the Task Force on Small Medium Enterprises (SMEs)  of the 4th Ministerial Meeting on Industrial Cooperation 26-27 January 2015, Tehran, Iran are as follows:

-All the Member States and shall forward their views and comments within one (1) month on the communication network draft. In case no feedback received, it will be considered as accepted;

-Nigeria will hold the SPX/ Cluster Development Training session in the last quarter of 2015 (to be confirmed);

-Turkey will hold an SME Financing Model Workshop in the second half of 2015;

-Iran will hold a Workshop on SME Market Development Models in the 3rd quarter of 2015;

-D-8 Members States will prepare a list of investment opportunities and share it among Members in order to attract investors;

-D-8 Member States will facilitate participation of small industries introduced by the SMEs organizations of Member States in relevant exhibitions;

-Turkey will chair SMEs Governmental Bodies Meeting for the next two years (2015-2016);

-The meeting finalized and proposed Statement on SMEs to be included in the Tehran Declaration;

-The meeting finalized and signed the Memorandum of Understanding (MoU) between SMEs Governmental Bodies at the 4th D-8 Ministerial Meeting on Industrial Cooperation;

Turkey, Indonesia, Iran, Nigeria

Mr. A.K.M. Rafiqul Islam
Deputy Secretary
Phone: +88 02 9552970

Mr. Raouf Hasan Farg
Head of Central Department of Investment Policies and International Agreement
Ministry of Trade & Industry
Phone: +2022 794 4984
Fax: +2022 7953466

Director of Metal and Electronics Industries
Jln. Jend. Gatot Subroto Kav. 52-53, 17th floor Jakarta Selatan 12950
Phone: +62 21 5253782, 
+62 21 525 5509
Ext: 2523, 4075
Fax: +6221 5253782

Mr. Ahmad Javanmardi
Phone: 0098-21-88770918
Fax: 0098-21-88770920

Mr. Dato’ Hafsah Hashim 
SMEs Corp.
Aras 20, West Wing Menara Matrade
Jalan Khidmat Usaha off Jalan Duta 50480 Kuala Lumpur
Phone:603 6207 6013
Fax: 603 6203 7911

Mr. Ali Ishtihaq
Assistant Manager
Ministry of Industries & production SMEs Dev. Authority)
Phone: 111-111-456
Ext: 355 
Fax: 042 36370474

Public Sector:
Selma Tezyetis – Head of Dept.
Tel: +90 312 595 26 48
Fax: +90 312 368 07 15

Private Sector:
Abdullah Cortu
Tel: +90 312 385 5090
Fax: +90 312 354 5898

Meetings so far held:

-1st D-8 SMEs Governmental Bodies Meeting (7 December 2010, Tehran – Iran) 

-2nd D-8 SMEs Governmental Bodies  Meeting (4 October 2011, Istanbul-Turkey) 

-D-8 Private Sector Investment Workshop on Gene Bank Development and Management and Investment in Fertilizer Production (15-17 May 2012, Abuja – Nigeria) 

-3rd D-8 SMEs Governmental Bodies Meeting (18-19 June 2012, Abuja – Nigeria) 

-4th SMEs Governmental Bodies Meeting (9 October 2012, Dhaka-Bangladesh) 

-Workshop on Micro-finance for SMEs (15-16 August 2013, Abuja, Nigeria) 

-5th D8 Governmental Bodies Meeting  (18-19 November, 2014, Abuja, Nigeria)

-D-8 Task Force Meeting on Small Medium Enterprises (SMEs) (26-28 January 2015, Tehran-Iran)