The African Continental Free Trade Area (AfCFTA) Secretariat is counting on small and medium-sized enterprises, youth-led businesses and informal traders to drive a doubling of intra-African trade by 2035, Secretary-General Wamkele Mene said at the launch of the second cohort of the Agribusiness Export Readiness Accelerator Program.
Speaking about the program, which brought together more than 100 small-business operators from 13 West African countries, Mene said SMEs would be critical to unlocking the full potential of the continent’s single market and boosting economic growth, job creation and industrialization.
“Intra-African trade is absolutely vital for Africa’s economic growth, prosperity and job creation,” Mene said, adding that young entrepreneurs and small businesses would be “co-drivers of Africa’s economic development.”
The accelerator program, organized by the Africa Leaders Foundation and the African Export-Import Bank, aims to equip agribusiness exporters with the skills and tools needed to access opportunities created by the AfCFTA and other regional markets.
Mene said the trade pact, which seeks to eliminate barriers between African economies, offers businesses access to a market of 1.4 billion people and opportunities to expand production through economies of scale and preferential trade arrangements.
The remarks come as the AfCFTA Secretariat pushes to increase trade among African countries, which is projected to exceed $260 billion, with agriculture, agro-processing and manufacturing expected to account for a significant share of growth.
A large portion of existing intra-African commerce is driven by women-led enterprises, youth entrepreneurs and informal traders operating in sectors such as agriculture and small-scale manufacturing, Mene said, arguing that targeted investments in infrastructure, technology and business-support services would be essential to sustain growth.
“The projected growth of intra-African trade to over $260 billion highlights the importance of focusing on sectors with substantial SME involvement or smallholder farmer involvement,” he said.
The AfCFTA Secretariat has introduced several initiatives aimed at lowering the cost of trade and improving market access, including the Intra-African Trade Fair and the Pan-African Payment and Settlement System, which enables businesses to settle transactions in local currencies without relying on foreign exchange.
Mene said complementary programs such as the Agribusiness Export Readiness Accelerator would help businesses capitalize on opportunities within the continental market.
The secretariat has identified pharmaceuticals, automotive manufacturing, agriculture, agro-processing, transport and logistics as priority sectors for driving industrialization and regional trade.
To support the transition to the single market, the AfCFTA, with backing from development partners, has also established the Adjustment Fund, which is designed to help governments and private companies manage the costs associated with trade liberalization and expand value-added production.
Mene said recently adopted protocols on women and youth in trade, as well as digital trade, would further reduce barriers facing small businesses seeking to expand beyond their domestic markets.
“We are well-poised as a continent to reach the goals of doubling intra-African trade by the year 2035, on the back of trade which is driven by small, medium enterprises and youthful entrepreneurs,” he said.
