Advantage to MSMEs
The African Continental Free Trade Area (AfCFTA) offers significant advantages to Micro, Small, and Medium-sized Enterprises (MSMEs) in Africa. These include expanded market access, reduced trade barriers, increased opportunities for
collaboration, integration into regional supply chains, enhanced competitiveness, access to vital information through the African Trade Observatory, facilitated payments and settlements, and potential capacity-building initiatives. AfCFTA provides MSMEs with a platform to compete on a larger scale, fostering economic growth and development across the continent.
Challenges to MSMEs
African Micro, Small, and Medium-sized Enterprises (MSMEs) encounter challenges such as limited access to finance, inadequate infrastructure, regulatory barriers, difficulty accessing markets, lack of skills and training, limited technology adoption, vulnerability to economic shocks, informality, and supply chain disruptions. These obstacles can impede the growth and competitiveness of MSMEs, necessitating comprehensive efforts from governments, financial institutions, and development agencies to create a more conducive environment for their success.