A new study conducted by the Aya Institute with support from German Agency for International Cooperation (GIZ), has revealed a wide knowledge gap among women led businesses on the African Continental Free Trade Agreement (AfCFTA).
According to the study, a year after trading commenced under the African Continental Free Trade Agreement (AfCFTA), about 73.80 per cent of traders have been identified to have “little or no understanding” of AfCFTA protocols on goods and service. It also showed that a corresponding 52 per cent of firms that operated across key sectors of the Ghanaian economy had little or no understanding of the protocols.
The study conducted by the Aya Institute was aimed at enhancing the capacity of women-led Micro Small Medium Enterprises (MSMEs) and cross-border traders to take advantage of AfCFTA. It sought to explore the level of preparedness and awareness of cross-border women traders and women-led MSMEs while identifying challenges confronting women traders and women led MSMEs in taking advantage of the AfCFTA.
Methodology of the Study
Madam Eunice Offei, a research team member, speaking on the methodology of the study at a workshop to disseminate findings of the study, indicated that both a quantitative and qualitative methods that included desk review approach, focus group discussion and survey were deployed for the study.
“Purposive sampling was used to select the women traders and women-led businesses across the major economic and trading zones in the country.”
Madam Eunice Offei
Madam Eunice Offei noted that 83 firms and about 370 women traders were sampled for the purpose of a survey and a Focused Group Discussion with 16 members in each group. The data, she indicated, was collected in Accra, Kumasi, and among other urban centres and areas along the border towns of Aflao, Elubo, and Paga.
“About 52 per cent of participants were in the services sector with 41 per cent in the retail sector and seven per cent in the manufacturing sector.”
Madam Eunice Offei
The study also revealed that AfCFTA awareness level in the services and retail sector was much higher than the level in manufacturing sector with less than 35 per cent of traders in the sector aware of AfCFTA as compared to 55 per cent and 50 per cent of counterparts in the retail and services sectors respectively.
Traders not Prepared to Explore AfCFTA Market
Madam Offei indicated that majority of traders and firms are not fully prepared to explore AfCFTA market as about 65.6 per cent of traders said there had not been sufficient time and resources to prepare for trading under AfCFTA while a corresponding 45 per cent of firms expressed the same view.
The researcher added that 82 per cent of traders with a corresponding 79 per cent of firms have not had any financial assistance to make the needed investment or scale up production for AfCFTA.
“Currently, there has not been any kind of assistance from any institution since the commencement of the AfCFTA Initiative. This is the case for all participants.”
Madam Eunice Offei
The study again noted that issues of bribery and corruption at borders, increase in importation of substandard goods and unsustainability of AfCFTA are due to instability on the continent, were concerns raised by businesses in the country.
As part of the study recommendation, Madam Offei, among other things, called for the adoption of innovative financing strategies for MSMEs, adoption of an information dissemination approach to bridge awareness gap on AfCFTA and the setting up of institutional support mechanism for traders across regions.
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