SMEs in the AfCFTA: Challenges, opportunities and the way forward

The Africa Continental Free Trade Agreement, ACFTA, promises to unlock a vast market of 1.3 billion people, offering tremendous growth opportunities for SMEs. However, challenges such as infrastructure funding, limited access to finance, and regulatory barriers, among others, still persist. To explore this further, CNBC Africa's Derrick Muhangi filed a report. The African Continental Free Trade Area promises a single, unified market of 55 countries and 1.3 billion people, unlocking vast opportunities for small and medium-sized enterprises to drive growth, innovation, and job creation. The Indo-Native entrepreneurs are utilizing ancient African techniques to craft natural soaps and cream products for a growing market. With visions of global competitiveness, they are lavishing the African continental free trade area to expand their supply chain and value chain across neighboring countries. As small entrepreneurs grow and expand their businesses in Africa, they are still met with key challenges. Access to capital remains a core challenge for many young entrepreneurs on the continent. Moreover, there are significant obstacles in terms of movement of goods due to trade barriers and logistical challenges across borders. Small businesses struggle with compliance and high costs associated with international trade, making it difficult for them to compete effectively. The African Continental Free Trade Area offers a tremendous opportunity for African businesses to tap into the vast continental market and usher in a new age of trade in Africa. Despite the challenges faced by SMEs, there is hope for growth and expansion with strategic partnerships and government support. By fostering collaborations and enabling environments, SMEs can realize their full potential and contribute to the economic development of the continent. The voices and views of small enterprises underscore the need for targeted support and a conducive business environment to unlock the growth opportunities presented by the AfCFTA.