Small and Medium Enterprises (SMEs) have been urged to collaborate and embrace the tenets of the Africa Continental Free Trade Area (AfCFTA) to overcome trade barriers.
This call was made by Mr. Silver Ojakol, Chief of Staff of the AfCFTA Secretariat on behalf of the Secretary-General, H. E. Wamkele Mene, at the 2023 Regional Integration Issues Forum (RIIF) in Accra, Ghana.
He emphasized the importance of the AfCFTA for SMEs, noting that the agreement is not for big corporations, “the agreement was designed and framed for the women and young men who on a daily basis face challenges across the continent when crossing neighbouring borders to trade in goods and services.
“If African countries came together and achieved just one percentage increase in trade amongst itself, we would earn 70 billion dollars, which will be higher than the 58 billion dollars given by donors as development assistance,” he noted.
The RIIF is a sensitization mechanism and an interface platform for stakeholders involved in regional integration and continental trade initiatives.
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The 2023 RIIF is aimed at increasing awareness of the AfCFTA and its benefits for SMEs, as well as strengthening SMEs’ capacity to engage in intra-African trade.
The two-day SME conference was under the theme “Breaking Business Barriers for AfCFTA Acceleration.”
The conference was organized by the Centre for Regional Integration Africa (CRIA), the African Capacity Building Foundation (ACBF), in collaboration with the Ghana Institute of Management and Public Administration (GIMPA), and the African Continental Free Trade Area (AfCFTA) Secretariat, and with the support from Afreximbank.
The conference brought together over 150 participants from across Africa, including government officials, business leaders, academia, and civil society representatives.
The participants discussed a wide range of issues related to AfCFTA implementation, including trade barriers, infrastructure, and access to finance.
In his opening remarks, Nana Dr Owusu-Afari, Chairman of Afariwaa Group of Companies, shared his personal story of how he started a poultry project from his backyard and grew it into one of Ghana’s most prosperous small-scale businesses.
He emphasized the importance of breaking trade barriers for SMEs, which are the backbone of economies in Africa and contribute significantly to employment creation and GDP growth.
Mr Ian Mashingaidze, the interim Director of programs at the African Capacity Building Foundation (ACBF), highlighted the importance of capacity building in supporting the successful implementation of AfCFTA, “the ACBF’s Strategic Plan for 2023-2027 places a strong focus on ‘Trade as an Engine of Economic Development’ as one of the key impact areas and provides targeted capacity building support to governments, policymakers, institutions, and individuals involved in the AfCFTA implementation process.”
Prof. Lehlohonolo Tlou, Executive Director, Centre for Regional Integration in Africa (CRIA), indicated the importance of capacity building and equipping SMEs with the requisite skills and knowledge to break intra-Africa trade barriers and produce what they need.
She emphasized that 60 years after the establishment of the OAU and the African Union, intra-African trade is abysmally low at 16%, saying “Africa still produces what it does not consume and consumes what it does not produce”.
“The 2023 RIIF conference was convened as part of measures to raise awareness of the benefits of the AfCFTA, build capacity for SMEs to access regional markets; and encourage SMEs to explore partnerships for establishing regional value chains,” she added.
Prof. Samuel Bonsu, Rector, Ghana Institute of Management and Public Affairs (GIMPA), reiterated the fact that Africa has the youngest population and the need for intra-Africa trade to transform resources into better value could not have come at a better time.
“Africa has 420 million people aged 15 to 25, representing 40% of the total population, and 70% of the African population is below 35,” he noted.
He expressed his hope that GIMPA as an institution of higher learning is better positioned to work with CRIA, ACBF and other partners to foster trade on the African continent by empowering businesses and leaders to develop policies and initiatives that are relevant to support SME growth on the continent.
The conference ended with a call to action for all stakeholders to work together to break down barriers to trade and accelerate the implementation of the AfCFTA.
The participants committed to working with their respective governments and businesses to create the conditions necessary to transform Africa’s economy and create a prosperous future for all Africans.
