When people envision African exports, they frequently imagine crude oil tankers, crates of cocoa beans, or bales of raw cotton. However, one crucial element is absent from these images—the lifeblood of a robust economy: small and medium-sized enterprises (SMEs).
Approximately 80% of jobs on the continent are provided by SMEs (Afreximbank, 2025), but these businesses make up only a minor portion of Africa’s international commerce. This discrepancy isn’t an unavoidable outcome; rather, it stems from past export strategies centered around raw goods, reliance on aid, and insufficiently developed intra-regional supply networks. Additionally, this disparity highlights the most evident sign of unexploited potential.
The African Continental Free Trade Area (AfCFTA) shifts the paradigm. It presents 54 integrated markets and 1.4 billion potential customers to Small and Medium Enterprises (SMEs), providing them an unprecedented opportunity to expand across borders and engage effectively in international supply chains. Nevertheless, seizing this chance requires more than just availability; Africa needs to proactively develop “export-ready” SMEs—companies equipped with the competencies, infrastructure, financial resources, and networking needed for global competition.
Why Don’t Most Small Businesses in Africa Export Today?
Even though they make up the bulk of business activities and jobs across Africa, most small and medium-sized enterprises (SMEs) remain limited to regional or domestic markets. Various structural obstacles prevent them from broadening their scope.
High compliance costs
Adhering to global product regulations can prove expensive and complex from a technical standpoint. Take, for instance, shipping cassava flour to Europe; this might necessitate obtaining certifications related to pesticide limits, allergy information labeling, as well as adhering to traceability procedures.
Limited market information
A lot of small and medium-sized enterprises function without adequate information. They do not have access to up-to-date details regarding overseas export demands, price fluctuations, regulatory changes, and shifting customer tastes internationally.
Fragmented supply chains
Many logistics systems across various African nations continue to operate independently of one another. Small and medium-sized enterprises face difficulties when trying to utilize cold storage facilities, reliable trucking services, or affordable transportation options. This situation disproportionately impacts products that require timely delivery or have limited shelf lives.
Credit constraints
Lacking formal guarantees, credit records, or familiarity with export finance mechanisms, small and medium-sized enterprises frequently find it difficult to obtain the necessary funds for growth. Those that do manage to get funding often face elevated interest rates along with short repayment periods.
According to a 2024 survey conducted by the African Trade Policy Centre, less than 20% of small and medium-sized enterprises (SMEs) in Africa have tried exporting goods internationally. They cited regulatory challenges, funding shortages, and insufficient support as key obstacles preventing them from doing so (AfCFTA Secretariat, 2025).
AfCFTA’s milestone: Equal playing fields
The AfCFTA’s Guided Trade Initiative, which was initiated in 2022 in Ghana, provides an insight into potential achievements. This accord considerably diminishes border obstructions by streamlining customs processes, implementing a unified certificate of origin, and standardizing product regulations.
Around 40 nations are now exporting goods within this new system. Initial reports suggest that companies involved have decreased their export paperwork expenses by as much as 35% (Afreximbank, 2025).
This transformational potential applies equally to small businesses in places like Tamale or Kumasi. It signifies that such companies would only require one-time compliance to gain entry into 54 different marketplaces, assuming they meet the necessary standards for product quality and timely deliveries.
However, simply “opening the gates” is not enough. Without intentional capacity-building and market linkage efforts, larger firms will continue to dominate cross-border flows while SMEs remain sidelined.
What makes an SME export-ready?
Being export-ready encompasses more than merely possessing a quality offering. It necessitates building a cohesive environment within an organization where strategy aligns with implementation and foresight meets rigor. This demands reinforcing a network of interconnected competencies.
Documentation literacy
Grasping export documentation, including certificates of origin, customs codes, and Harmonized System (HS) codes, along with financial instruments such as letters of credit or export guarantees, is essential. Small and medium-sized enterprises (SMEs) should be adept at managing tariff classification and overcoming non-tariff obstacles effectively. Even minor mistakes in product details or absent signatures could cause delays lasting several weeks.
Quality assurance systems
Apart from single-instance certifications, small and medium-sized enterprises (SMEs) should establish systemic frameworks to maintain steady quality levels consistently. This enhancement includes developing standardized operational processes (SOPs), maintaining tracking documents, and performing internal reviews. In the case of agribusinesses, this could encompass adherence to Good Agricultural Practices (GAP). For manufacturers, compliance with ISO standards or Hazard Analysis Critical Control Points (HACCP) might be necessary. European or North American purchasers demand verifiable documentation rather than mere spoken promises.
Packaging and branding
The export packaging should safeguard the item, adhere to legal requirements, and attract customers. This could include using multi-layered packaging, secure seals, and labels in multiple languages. Equally important is branding. The visual appeal, tactile experience, and storytelling of a product are crucial factors. Regardless of whether it’s organic shea butter sourced from Tamale or ceramic tiles made in Sekondi, the brand story needs to connect deeply with potential purchasers abroad.
After-sales service capacity
Exporting marks the start of a partnership rather than concluding a deal. Suppliers and sellers look for transparent refund policies, assistance with displaying products on shelves, and periodic check-ins. Having just one accessible point of communication, such as a dedicated WhatsApp line or an export coordination email, can significantly impact whether you receive ongoing business or be met with radio silence.
Digital visibility
Modern purchasers look for products and services online. Small and medium-sized enterprises should ensure they possess a basic yet effective website, optimized keywords, and current listings on business-to-business platforms like Alibaba, TradeKey, or specialized African trading websites. Demonstrating social validation through testimonials, images, and collaborations can boost trustworthiness. In this era of technology, being visible isn’t just an advantage; it has become essential.
Production scalability
Is the SME capable of fulfilling an order for 10,000 units? And how swiftly could it increase output if a customer were to double their order? A significant number of promising SMEs lose out on opportunities simply because they cannot show that they have the capacity to expand production, secure large quantities of raw materials, or adhere to strict deadlines.
Legal readiness
Exporting also entails risks such as exchange rate volatility, contractual conflicts, and logistical disagreements. Small and medium-sized enterprises should have access to legal templates, assistance with contract talks, and fundamental training in areas including intellectual property rights, Incoterms, and dispute resolution methods.
Moreover, we have the issue of mindset. Numerous small and medium-sized enterprises (SMEs) continue to perceive exporting as a perilous jump instead of viewing it as part of a strategic plan for sustained expansion. Changing this mental framework is every bit as crucial as addressing any practical logistics challenges. Entrepreneurs should start seeing themselves as integral parts of an extensive continental marketplace rather than merely participants in their local markets. While dreaming big is essential, these business leaders must simultaneously develop robust capabilities to put those dreams into action efficiently.
Effective approaches to expand Africa’s pool of export-capable small and medium-sized enterprises
National Export Readiness Academies
Public-private collaborations can offer flexible training modules on trade procedures, digital marketing strategies, regulatory paperwork, and product standards. These educational resources may be provided either face-to-face or via smartphone applications.
Access to pre-export finance
Dedicated financing facilities, supported by partial guarantees and aligned with AfCFTA trading corridors, can help small and medium-sized enterprises (SMEs) cover upfront expenses such as product testing, legal assistance, or regulatory labeling. By blending various funding sources—such as public funds, donations, and private investments—the risks involved can be reduced effectively.
SME-focused trade missions
Government bodies ought to emphasize the inclusion of small businesses in international trade delegations. Customized trips focusing on key regions like Lagos, Abidjan, or Nairobi could offer opportunities for matching with potential partners, presenting samples, and connecting with retail networks led by members of the diaspora.
One-stop trade portals
A comprehensive digital platform that consolidates customs procedures, market listings, trading guidance tools, and connections with logistics service providers could alleviate the overwhelming amount of information small and medium-sized enterprises (SMEs) encounter. Although the Ghana Export Promotion Authority (GEPA) has taken significant steps toward this, broader adoption remains essential.
SDG-linked export incentives
Small and medium-sized enterprises (SMEs) that have exports meeting specific criteria for sustainability, gender equality, or environmental standards might be eligible for rebates, awards, or priority purchasing opportunities. This encourages sustainable expansion consistent with broader developmental aims.
Small and medium-sized enterprises are the champions of the continent.
Africa’s growth will not hinge exclusively on natural resources, major construction initiatives, or foreign investments. Instead, it will stem from countless small and medium-sized enterprises (SMEs) that are innovative, flexible, and deeply connected to their local communities. These businesses will create, market, and ship products that showcase Africa’s creativity and fortitude.
The AfCFTA offers the roadway. However, for us to have SMEs travel on it successfully, we need to provide them with vehicles, maps, fuel, and the essential driving instruction required for their voyage.
The future isn’t focused on extraction; it’s centered around connection. This involves linking up over boundaries, bridging different industries, and uniting smaller players with larger frameworks.
Let’s dedicate our time and resources to what truly counts. Let’s focus on supporting the enterprises that are constructing Africa from the grassroots level.
I trust you found this piece informative and engaging. Your comments are highly valued and appreciated. Feel free to suggest subjects you’d like me to explore further. You can book a session with me via my Calendly link provided.
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If you wish to delve deeper into this topic, I’ve assembled a collection of readings and resources that offer more detailed insights and concentrate on specific aspects.
Afreximbank,\xa0
Annual Trade Report 2024: Trends in African Internal Trade
\xa0(Afreximbank 2025) 17–18
AfCFTA Secretariat, ‘Dashboard for Guided Trade Initiative’ (2025)
https://afcfta.au/int/GTI
\xa0accessed 23 April 2025
African Trade Policy Centre,\xa0
Survey on Small and Medium-sized Enterprises’ Export Involvement in Africa 2024
\xa0(ATPC/UNECA 2025)
World Bank,\xa0
Conducting a Business Simulation for Ghana 2024
(As per World Bank 2024, Section 4)
World Economic Forum,\xa0
Expanding Small and Medium Enterprises in Africa: Trade and Competitiveness
\xa0(WEF Report 2024)\xa0
https://www.weforum.org/reports/scaling-smes-africa-2024
\xa0accessed 23 April 2025
I hope for an exceptionally fruitful and prosperous week ahead for you!
♔ —- ♔ —- ♔ —- ♔ —- ♔
Dr. Maxwell Ampong acts as the CEO of the company mentioned.
Maxwell Investments Group
He serves as an Honorary Curator at the Ghana National Museum and acts as the Official Business Advisor for Ghana’s biggest agricultural trade union within the Ghana Trade Union Congress (TUC). Additionally, he founded the organization.
WellMax Inclusive Insurance
and
WellMax Micro-Credit
Dr. Ampong contributes articles on pertinent economic issues and offers broader viewpoint essays.
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Disclaimer: The perspectives, ideas, and viewpoints shared in this piece belong exclusively to the writer, Dr. Maxwell Ampong, and do not inherently signify or mirror the official policies, positions, or convictions of Maxwell Investments Group or any related entities. References made regarding regulations or guidelines are interpreted personally by the author and do not aim to depict the formal standpoint of Maxwell Investments Group. This document serves purely as an informative resource and does not act as professional guidance concerning law, finance, or investments. It is advised that readers obtain their own counsel prior to taking action based upon this data. Maxwell Investments Group will bear neither accountability nor fault for inaccuracies within the content or consequences arising from actions taken following the presented information.
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