How Kenyan SMEs can take advantage of AfCFTA opportunities

Kenya has recently taken the first steps towards leveraging the opportunities presented by the African Continental Free Trade Area (AfCFTA), with the exportation of goods and the flagging off of consignments to countries like Ghana. However, the focus now shifts to how small and medium enterprises (SMEs) in Kenya can actively participate in and benefit from this historic trade agreement. Victor Otieno, Managing Director at Viffa Consult, shared insights on the importance of SME involvement in the AfCFTA and the necessary steps to ensure their successful participation. The AfCFTA aims to create a single market for goods and services across Africa, potentially unlocking significant growth opportunities for businesses across the continent. However, for SMEs in Kenya, especially those in the informal sector, challenges such as lack of information, poor product quality, and limited market access have hindered their ability to fully tap into the benefits of the AfCFTA. To address these challenges, SMEs need to collaborate, enhance their products' quality, and actively engage with government and relevant business associations to navigate the complexities of the trade agreement. One key aspect highlighted by Otieno is the need for SMEs to consolidate their efforts and form clusters to strengthen their representation and competitiveness in the market. Additionally, government support through updating databases, providing market intelligence, and facilitating participation in trade committees can significantly boost SMEs' chances of success in the AfCFTA. Moreover, business associations like the Kenya Association of Manufacturers and KEPSA can play a pivotal role in supporting SMEs by providing mentorship, training, and advocacy services. By bridging the gap between SMEs and the opportunities presented by the AfCFTA, these associations can help in unlocking the full potential of Kenyan businesses in the continental market. In conclusion, the AfCFTA presents a promising avenue for Kenyan SMEs to expand their horizons and access new markets within Africa. With the right support, guidance, and collaboration, SMEs can overcome existing challenges and thrive in the era of continental trade integration.