BTA2023 Africa’s push toward regional integration and industrial transformation is being slowed by the weak participation of small and medium-sized enterprises (SMEs) in cross-border trade, Ghana’s Vice President Prof. Naana Jane Opoku-Agyemang has warned.
Only around 20 percent of SMEs across the continent are involved in export activity, a figure the Vice President described as alarming given Africa’s demographic structure and innovation potential.
She made the remarks at the opening of the African Prosperity Dialogues 2026 on Wednesday, February 4, where she expressed concern over the continued marginalisation of women and young people in regional trade, despite their increasing presence in entrepreneurship, technology, and the digital economy.
Financial and Structural Constraints Limit SME Expansion
Prof. Opoku-Agyemang linked the low export participation of African SMEs to persistent structural and financial constraints. These include poor access to affordable finance, weak market connections, regulatory hurdles, and fragile institutional support systems that make it difficult for businesses to scale beyond national borders.
She noted that the consequences extend beyond individual firms, shaping broader macroeconomic outcomes by entrenching Africa’s dependence on primary commodity exports, restricting value addition, and reducing employment opportunities.
“Our youth account for more than 60 per cent of our population. Across the continent, our youth are driving technology and innovation from fintech to creative industries. However, this potential is not yet fully reflected in cross-border participation. Fewer than 20 per cent of SMEs engage in export trade,” she said.
Women and Youth Face Unequal Trade Barriers
The Vice President further observed that women-led businesses continue to face disproportionate barriers related to financing, mobility, and market access. At the same time, many young innovators lack the capital, skills, market pathways, and institutional backing required to grow their enterprises beyond domestic markets.
She warned that without corrective action, these constraints could lock African economies into low-productivity growth paths, characterised by exporting raw materials, importing finished goods, and losing skilled talent to migration.
AfCFTA Gains at Risk
Prof. Opoku-Agyemang stressed that failure to address SME participation gaps could undermine the objectives of the African Continental Free Trade Area (AfCFTA), which was established to expand intra-African trade, accelerate industrialisation, and promote inclusive economic growth.
She called for coordinated policy interventions to improve access to finance, strengthen export readiness among SMEs, remove non-tariff barriers, and enhance regional trade infrastructure—particularly for women- and youth-led enterprises.
She concluded that enabling SMEs to play a meaningful role in export trade is essential for economic diversification, stronger regional value chains, and converting Africa’s demographic advantage into sustained growth.
