- Only 20% of African SMEs are involved in export trade, limiting regional integration
- Women and youth remain underrepresented in cross-border commerce despite driving innovation
- SMEs face financial, regulatory and institutional barriers that hinder export readiness
Africa’s push for deeper regional integration and industrial development continues to face setbacks due to the limited participation of small and medium-sized enterprises (SMEs) in cross-border trade.
Currently, only about 20 per cent of SMEs across the continent are engaged in export activities—a situation Vice President Prof. Naana Jane Opoku-Agyemang has described as deeply concerning.
Speaking at the opening session of the African Prosperity Dialogues 2026 on Wednesday, February 4, the Vice President expressed concern over the persistently low involvement of women and young people in cross-border trade, despite their increasing influence in innovation, entrepreneurship and the digital economy.
She attributed the weak export orientation of African SMEs to a range of structural and financial challenges, including limited access to affordable financing, poor market linkages, regulatory constraints and weak institutional support systems that hinder business expansion beyond domestic markets.
Prof. Opoku-Agyemang noted that the low rate of SME participation in exports has far-reaching macroeconomic implications, reinforcing Africa’s reliance on raw material exports, limiting value addition and restricting job creation across the continent.
“Our youth make up more than 60 per cent of our population and are driving innovation across sectors—from fintech to the creative industries. Yet this potential is not adequately reflected in cross-border trade participation, with fewer than 20 per cent of SMEs engaged in export activity,” she stated.
She further pointed out that women entrepreneurs continue to face disproportionate barriers related to finance, mobility and market access, while many young innovators lack the capital, skills, market pathways and institutional support needed to scale across borders.
According to the Vice President, these gaps risk trapping African economies in low-productivity growth models marked by primary commodity exports, heavy reliance on imported finished goods and the loss of skilled talent through migration. She warned that without targeted policy interventions, the continent could fail to fully harness the benefits of the African Continental Free Trade Area (AfCFTA), which aims to boost intra-African trade, industrialisation and inclusive growth.
Prof. Opoku-Agyemang called for coordinated and deliberate actions to expand access to finance, strengthen export readiness among SMEs, reduce non-tariff barriers and improve regional trade infrastructure, with particular attention to women- and youth-led enterprises.
She concluded that enabling SMEs to participate meaningfully in export trade is essential for economic diversification, stronger value chains and converting Africa’s demographic advantage into sustainable economic growth.
