Government resolute in empowering Micro, Small, and Medium Enterprises to dominate African Continental Free Trade Area
Ghana's Trade and Industry Minister, Alan Kyerematen, reinforced the government's commitment to bolstering Micro, Small, and Medium Enterprises (MSMEs) in a bid to position them as key players in the Africa Continental Free Trade Area (AfCFTA). In his address at the West Africa Connect (WAC) 2022 in Accra, Kyerematen highlighted the integral role of MSMEs in Ghana's economy, as nearly 70% of industrial establishments in the country are MSMEs, contributing to 70% of GDP, and providing over 85% of manufacturing jobs.
However, he noted that the sector faces several challenges that hinder their competitiveness and overall growth. The government has therefore put measures in place to ensure the sector's competitiveness across the country.
The 2022 WAC event, organized to connect MSMEs within cassava and mango production, and Information Communication Technology (ICT) value chains, was praised by Kyerematen. The event facilitated access to markets for participating MSMEs, and provided opportunities for potential businesses with partners. He encouraged all participating MSMEs to fully utilize the opportunities provided by the WAC event.
Kyerematen also pledged government's commitment to accelerate Ghana's MSME sector by collaborating with key stakeholders in the space. He urged regional actors, including the ECOWAS Trade Network and private sector actors, to take ownership of the regional initiative to boost intra-African trade and international trade opportunities for MSMEs.
The West Africa Connect event brought together industry representatives from the mango, cassava, and ICT service sectors in a hybrid format. With financial aid from the European Union (EU), the event connected over 160 suppliers from 16 West African countries with more than 20 buyers from West Africa and other regions. The event welcomed various high-level representatives, including the acting Director of Trade-ECOWAS Commission and representatives from the Economic Community of West African States (ECOWAS) Commission, West African Monetary and Economic Union (UEMOA) Commission, and the ECOWAS Trade Promotion Organisation (TPO) Network.
The event's main objective was to connect suppliers from the region with buyers both inside and outside the region. The open and competitive call for applications secured participation of targeted enterprises in the region, allowing them to demonstrate the quality of their products and services, which attracts promising businesses and partnerships during the B2B sessions.
The West Africa Competitiveness Programme (WACOMP), funded by the European Union and aimed at strengthening the West Africa region's competitiveness, enhancing the integration of ECOWAS member-states and Mauritania into the regional and international trading system, can play a significant role in enabling MSMEs to become major players in the AfCFTA by addressing their competitiveness challenges and enhancing their competitiveness. In particular, the programme offers technical and financial support, facilitates market access, maximizes MSME export potential, strengthens institutional capacities, and addresses sustainability and environmental issues. When implemented effectively, these strategies can help MSMEs overcome their challenges and capitalize on the opportunities offered by the AfCFTA. West African MSMEs need to focus on strategies such as adopting technology, enhancing value addition, conducting market research and intelligence, ensuring compliance with regulations, and building strategic partnerships to position themselves for success in the AfCFTA market.
- The Trade and Industry Minister of Ghana, Alan Kyerematen, stressed the importance of Micro, Small, and Medium Enterprises (MSMEs) in the Africa Continental Free Trade Area (AfCFTA), as they contribute significantly to Ghana's economy.
- The Minister highlighted the numerous challenges that hinder the competitiveness and growth of the MSME sector and outlined measures the government has taken to address these issues.
- At the West Africa Connect (WAC) 2022, Kyerematen praised the event for facilitating access to markets for MSMEs, thereby offering potential business opportunities.
- The Minister encouraged all participating MSMEs to seize these opportunities, emphasizing the need for collaboration with key stakeholders to boost intra-African trade.
- The West Africa Competitiveness Programme (WACOMP), funded by the European Union, could significantly help MSMEs in West Africa become key players in the AfCFTA by providing technical and financial support, facilitating market access, and addressing sustainability and environmental issues.
- To position themselves for success in the AfCFTA market, West African MSMEs should focus on strategies such as adopting technology, enhancing value addition, conducting market research and intelligence, ensuring compliance with regulations, and building strategic partnerships.
