The government has declared its commitment to promoting inclusive trade in Micro, Small, and Medium Enterprises (MSMEs) to strengthen Ghana’s trade outlook on the African continent.
Ghanaian-led enterprises are often challenged when it comes to trade with other industry players from neighboring countries. The government, through the Ministry of Trade, Agribusiness and Industry (MoTAI), is championing a national empowerment campaign to support MSMEs, especially women and youth-led.
Speaking at a National AfCFTA Dialogue held in Accra, Mr. Yaw Sakyi, the Director of Administration at MoTAI, who represented the Minister, mentioned that the government is committed to supporting MSMEs due to the significant role they play, through trade, in the economy of Ghana and the African continent. He added that their role in sustaining economic growth makes this endeavor a very good card to play.
“Empowering these groups [women and youth in MSMEs] is essential to strengthening Ghana’s competitiveness in the continental market.”
Mr. Yaw Sakyi, Director of Administration MoTAI
Micro, Small, and Medium Enterprises (MSMEs) cover a wide range of economic activities such as manufacturing, production, and service provision. Their value is underscored by their dominant presence in the real sector of the Ghanaian economy. They create several jobs for the youth and women, as well as support exports and promote innovation.
The MSMEs are usually neglected because of their small size and operational scope. However, the government is pledging to support MSMEs to promote economic growth and social justice.
Impact on AfCFTA
According to Mr Benjamin Asiamah, the Acting National Coordinator of AfCFTA, the core mandate of AfCFTA is to create a unified African market by eliminating trade barriers, reducing tariffs, and facilitating the free movement of people and capital across the continent to boost intra-African trade and strengthen Africa’s position in the global market.
“Removing trade barriers and improving the movement of goods and services across the continent opens new doors for local businesses to expand and thrive.”
Mr Benjamin Asiamah, Acting National Coordinator of AfCFTA
He also emphasized that the women and youth who create their own businesses are strong supporters of the economy, as they create a long value chain that leaves a trail of jobs.
“Women and young entrepreneurs are the backbone of Africa’s micro and small businesses, making their inclusion central to the success of AfCFTA.”
Mr Benjamin Asiamah, Acting National Coordinator of AfCFTA
Challenges of MSMEs and Ghana’s Push-Through
The ecosystem and stakeholders of the MSMEs are frequently faced with a capacity gap. MSMEs often face limited finance, human capital (skills and management), technology adoption, and navigating regulatory environments. These issues collectively hinder their ability to grow, innovate, and withstand economic shocks.
Due to their informal nature (largely), which in itself is a challenge, their access to trade information is limited. This is hindering their capacity to evaluate risk, secure finance, and steer through complex trade rules. They are thus involved in high-risk trade practices, such as open bank accounts for their businesses, resulting in massive losses and an inability to secure loans.
MSMEs’ inability to compete with other countries in trade is rooted in insufficient knowledge of AfCFTA procedures. This basically shows a limited understanding of key trade documentation, rules of origin, and market information. Knowledge gap often leads to missed opportunities and an inability to fully leverage the agreement’s benefits.
The slow adoption of digital tools among MSMEs is caused by financial constraints, a lack of digital skills, and resistance to a suitable working familiar system. There is also poor internet infrastructure, concerns over data security, and the difficulty of competing with larger, more established digital businesses.
In a comparative analysis between Ghana and other African countries such as Kenya, Rwanda, and Nigeria, which currently demonstrate strong regional trade performance, several other critical challenges were identified, including cross-border harassment, delays at ports of entry, customs bottlenecks, and a lack of adequate sanitary facilities, especially for women traders.
In spite of these challenges raised by the participants at the dialogue, Ghana was acknowledged as one of the leading countries on the continent in facilitating the participation of women and youth in trade, largely due to supportive government initiatives and active MSME institutions.
Promoting MSMEs in AfCFTA – Interventions
During the discussions, the participants proposed several interventions to strengthen the participation of MSMEs in AfCFTA.
The government was encouraged to integrate MSME development strategies into national budgets and expand targeted support for businesses owned by women and youth.
Another key recommendation was the adoption of digital technologies, where traders will be supported to use digital platforms, e-commerce tools, and modern payment systems to access wider African markets. They also stressed the need for continuous public education in areas such as trade rules, export readiness, packaging standards, competitiveness, and documentation requirements.
The importance of intellectual property protection was also suggested. Participants were advised to register their intellectual property and innovations to safeguard their brands and allow institutions like the Ghana Enterprise Agency (GEA) to offer more structured assistance.
The women and youth in MSMEs were encouraged to collaborate, build capacity, and increase access to technology to ensure that Ghanaian MSMEs fully benefit from the opportunities presented by the AfCFTA.
The government, private sector, and development partners were also encouraged to form an effective ecosystem to build MSMEs, especially those led by women and youth.
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