Low SME export participation threatens Africa’s integration drive — Vice President
5th February 2026
Africa’s push for deeper regional integration and industrial development continues to face setbacks due to the low participation of small and medium-sized enterprises (SMEs) in cross-border trade, Vice President Prof. Naana Jane Opoku-Agyemang has said.
She revealed that only about 20 percent of SMEs across the continent are engaged in export activities, describing the situation as deeply concerning given the critical role of SMEs in job creation, innovation and economic transformation.
Prof. Opoku-Agyemang made the remarks at the opening session of the African Prosperity Dialogues 2026 on Wednesday, February 4, where she also expressed concern about the persistently low involvement of women and young people in cross-border trade, despite their growing influence in entrepreneurship, technology and the digital economy.
According to her, structural and financial challenges continue to limit the export potential of African SMEs. These include restricted access to affordable financing, weak market linkages, regulatory and non-tariff barriers, and inadequate institutional support systems that prevent businesses from scaling beyond domestic markets.
She noted that the low export participation of SMEs has broader economic implications, reinforcing Africa’s reliance on raw material exports, curbing value addition and limiting employment opportunities across the continent.
“Our youth make up more than 60 per cent of Africa’s population, and they are leading innovation across sectors—from fintech to the creative industries. Yet this dynamism is not reflected in cross-border trade. Fewer than 20 per cent of SMEs are involved in export activity,” she stated.
The Vice President added 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 backing needed to expand beyond national borders.
She warned that these challenges risk trapping African economies in low-productivity growth models marked by primary commodity exports, heavy imports of finished goods and the continued loss of skilled talent through migration.
Prof. Opoku-Agyemang stressed that without targeted policy reforms, Africa may fail to fully realise the benefits of the African Continental Free Trade Area (AfCFTA), which aims to expand intra-African trade, accelerate industrialisation and promote inclusive growth.
She called for coordinated and deliberate actions to improve access to finance, enhance export readiness among SMEs, reduce non-tariff barriers and strengthen regional trade infrastructure, particularly in support of women- and youth-led enterprises.
She concluded that enabling SMEs to participate meaningfully in export trade is essential to diversifying African economies, strengthening value chains and transforming the continent’s demographic advantage into sustained economic growth.