SMEs hold the key to AfCFTA’s success, says new report

AfricanSme
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A new report by the Pan-African Manufacturers Association (PAMA) has underlined the role of small and medium-sized industries (SMIs) in driving the African Continental Free Trade Area (AfCFTA).

According to the report, titled “AfCFTA: Impact and Opportunities Assessment for Africa’s SMIs,” these enterprises contribute up to 90% of employment across the continent.

Read also: SMEs urged to prioritise long-term vision over short-term profit

Challenges remain

The report highlights key obstacles SMIs face, such as poor infrastructure, low production capacity, limited access to finance, and lack of awareness about AfCFTA rules. While many SMIs are keen to engage in cross-border trade, these barriers hold them back.

Read also: FG moves to regulate BDSPs to strengthen SME support system

Call for immediate action

PAMA warns that “without targeted support” such as better infrastructure, financial assistance, and trade-friendly policies, SMIs risk being left behind. The report recommends solutions including “simplifying customs procedures,” forming “export clusters,” and increasing technical support.

Read also: SMEDAN, Kwara Governor move to strengthen federal-state support for MSMEs

Need for stronger policy support

The association calls on policymakers, regional bodies, and development institutions to act quickly. With the right support, SMIs could boost trade, reduce poverty, and support Africa’s industrial growth. The report concludes that SMIs can play a leading role in making AfCFTA a success for the continent.

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