first, no matter what we think of FDI .is a one catalyst for economic growth, especially in developing economies, where average industries couldnt afford infrastructures( external economies of scale). in such situation you discover, smaller industries benefiting from their facilities.Example is Nigeria, the no 1 black populous country in the world with over 140million population, quite difficult for indigenous companies to access infrastural facilities establishing GSM network, until when expertrate come in.then indigenous companies gained the confidence and experience using their God given faciities to productivity.
How does this affect SMEs, this given rise to various local firms to be active such as surveyors, engineering firms, telecenters, marketing communication outfits, advertising industries is being encouraged,and a whole lot more.On poverty alleviation, an average citize can decide to open a telecenter with less than 150 USD.
The benefit of EPA investment ethics on SMEs,is enourmous and mostly by promoting local production of materials being used, eg. example was a south aafrican communition company entered nigeria market, as a condition for granting the licence, the recharge cards must be produced in nigeria.1 as to provide job for the citizens, raise their standard of living, encouraging VALUE INITIATIVE within the urban, making them live above $1 per day. to thegovernent, increases govts source of revenue.