Only 20% of African SMEs have interaction in export organization – Prof Opoku-Agyemang – Life Pulse Daily
Editor-in-chiefFebruary 5, 20262 Mins read32
Only 20% of African SMEs Engage in Export Trade: Prof. Opoku-Agyemang Highlights Critical AfCFTA Challenge
Introduction
A stark reality has emerged from the corridors of African economic policy: less than one-fifth of the continent’s small and medium-sized enterprises (SMEs) are actively engaged in export activities. This concerning statistic was spotlighted by Professor Naana Jane Opoku-Agyemang, Vice President of Ghana, during her keynote address at the 2026 Africa Prosperity Dialogues in Accra. Her warning underscores a fundamental contradiction: while the African Continental Free Trade Area (AfCFTA) promises historic opportunities for economic integration and self-reliance, the very engines of Africa’s economy—its SMEs—remain largely on the sidelines of cross-border commerce. This gap threatens to undermine the continent’s aspirations for inclusive growth, structural transformation, and reduced dependency. With SMEs generating an estimated 80% of employment across Africa and contributing significantly to GDP, their exclusion from export value chains is not just a statistical anomaly but a systemic risk to long-term prosperity. This article delves into the implications of this 20% participation rate, analyzes the multifaceted barriers holding back African SMEs from export markets, and outlines actionable pathways to align SME capabilities with the vast potential of the AfCFTA. The analysis is grounded in verified data, policy frameworks, and the urgent need for a coordinated strategy that places women and youth at the center of Africa’s trade revolution.
Key Points
- Extremely Low Export Participation: Fewer than 20% of African SMEs are engaged in export trade, representing a major bottleneck for achieving a truly integrated single market under the AfCFTA.
- AfCFTA as a Transformative Framework: The agreement creates the world’s largest free trade area by number of participating countries, with a combined market of 1.3 billion people and a GDP exceeding $3.4 trillion, offering a pathway from aid dependency to economic self-reliance.
- SMEs as Economic Cornerstones: SMEs are responsible for approximately 80% of employment across Africa and contribute substantially to GDP, making them indispensable for job creation and poverty reduction.
- Gender and Youth Inclusion is Non-Negotiable: Women comprise nearly half of Africa’s workforce and dominate micro and small enterprises, yet they face disproportionate barriers to market access, finance, and mobility. Excluding young people and women from the export ecosystem will jeopardize sustainable prosperity.
- Inclusivity as a Prerequisite for Success: The benefits of the AfCFTA will be diluted if they accrue only to large, established corporations. An inclusive strategy that empowers SMEs, women, and youth is essential for broad-based economic transformation.
- Urgent Need for Capacity Building: Moving from rhetoric to implementation requires targeted interventions to address infrastructure deficits, financial constraints, regulatory complexities, and skills gaps that hinder SME export readiness.
Background
The African Continental Free Trade Area (AfCFTA): An Overview
Formally launched in 2021 and operational since January 2022, the AfCFTA is a flagship project of the African Union (AU) aimed at creating a single continental market for goods and services. The agreement seeks to progressively eliminate tariffs on intra-African trade, address non-tariff barriers, harmonize competition policies, and promote
Leave a comment