Fostering an inclusive energy transition through micro, small and medium-sized enterprises

Micro, small and medium-sized enterprises (MSMEs) are the main engine of economic growth in the Middle East and North Africa (MENA). The transition to a green economy represents both an environmental necessity and a significant economic opportunity for the region. However, without an intentional focus on gender, this transformation risks reinforcing existing inequalities, rather than dismantling them. 

Women in the region remain underrepresented in employment, leadership and entrepreneurship — especially in the clean energy and MSME sectors, which are key to the green transition. To address this gap, the Economic Research Forum (ERF), with support from IDRC, is providing the first baseline survey synthesis across six diverse MENA countries — Morocco, Jordan, Egypt, Tunisia, Lebanon and Sudan — highlighting both shared challenges and country-specific contexts. 

Women’s participation in the labour force in the region is just 18.8%, one of the lowest rates in the world, even though many women attain equal or higher educational levels than men. This means their skills are being overlooked, reflecting not only gender disparities but also missed economic opportunities, especially in green industries. In renewable energy, only 7-9% of the workforce in the MENA region are women, compared to 32% globally. The IDRC-supported research shows why women should be seen not just as passive beneficiaries but as active drivers of green economic growth, especially in MSMEs. 

Climate impacts and gender inequality 

Climate change impacts in the region — such as water scarcity, heat waves and food insecurity — affect women more given they already have less access to resources, finance and decision-making spaces. This research situates gender equality within broader climate action frameworks, showing that women’s leadership and entrepreneurship are essential for a just and inclusive energy transition.   

By linking gender equality to clean energy adoption, MSME growth and climate resilience, the research highlights how these areas work together toward sustainable development and supports the need for policies that are gender responsive.   

Filling the data gap: A regional research effort 

The study uses five comparable survey datasets and six country-specific interview datasets, helping to fill a major evidence gap in data about MSMEs, the energy transition and the role of women. While other low- and middle-income regions have gender-focused energy research, the MENA region is still lacking, especially when it comes to women’s role in the informal economy and small-scale energy entrepreneurship. This research compiles fragmented data, identifies where knowledge is missing and proposes targeted areas for further investigation to enable women’s participation in more advanced roles, better-paying skilled jobs and more profitable areas of the renewable energy sector.    

A path forward 

As the project’s principal investigator, Atif Kubursi, explained, to move from intention to impact, “[t]he real challenge now is about surmounting barriers, accessing finance, building the requisite infrastructure, developing the needed skills, energizing the private sector through the engagement of MSMEs and aligning public policy and the governance systems to speed and deepen the transition.”

Contributor: Khalid Ghozlani, Senior program officer, IDRC