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This chapter re-examines the growth potential of Africa's small-scale economy at the end of the 1990s in light of African economic growth, structural adjustments affecting the small-scale sector and education and training institutions (both formal and informal), and trends in donor policy aimed at poverty eradication and pro-poor growth. National and development cooperation policies have both direct and indirect effects on small and micro-enterprises (SMEs) in the countries of the African continent. The productivity of the African small-scale economy is closely linked with the productivity of the economy as a whole and new trends in the donor community during the 1990s have the potential to increase external support for this sector. Both national and donor policies for the promotion of SMEs are accompanied by concerns about the appropriate role of education and training in SMEs. The authors explore existing policies and programs for small-scale pro-capitalist development and for developing the skills needed to sustain the sector.