Africa’s efforts to achieve stronger regional integration and industrial expansion remain hindered by the low participation of small and medium-sized enterprises (SMEs) in cross-border trade.
Currently, only about 20 per cent of SMEs across the continent are involved in export activities, a development Vice President Prof. Naana Jane Opoku-Agyemang has described as a cause for concern.
Addressing participants at the opening of the African Prosperity Dialogues 2026 on Wednesday, February 4, the Vice President expressed worry over the consistently low engagement 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 presence of African SMEs to several structural and financial challenges, including limited access to affordable credit, poor market connections, regulatory constraints and inadequate institutional support, all of which restrict businesses from expanding beyond their domestic markets.
Prof. Opoku-Agyemang noted that the low rate of SME exports has far-reaching macroeconomic implications, deepening Africa’s reliance on raw material exports, reducing value addition and limiting job creation across the continent.
“Our youth make up more than 60 per cent of the population and are at the forefront of innovation across sectors such as fintech and the creative industries. Yet this potential is not adequately reflected in cross-border trade, as fewer than 20 per cent of SMEs are engaged in export activities,” she stated.
She further observed that women entrepreneurs continue to face unequal access to finance, mobility and markets, while many young innovators lack the capital, skills, market opportunities and institutional support needed to scale their businesses across borders.
According to the Vice President, these challenges risk trapping African economies in low-productivity growth patterns, characterised by the export of primary commodities, heavy dependence on imported finished goods and the loss of skilled labour through migration.
She warned that without deliberate policy reforms, the continent may fail to fully harness the benefits of the African Continental Free Trade Area (AfCFTA), which aims to increase intra-African trade, promote industrialisation and foster inclusive growth.
Prof. Opoku-Agyemang therefore called for coordinated and targeted interventions to enhance access to finance, improve export preparedness among SMEs, eliminate non-tariff barriers and strengthen regional trade infrastructure, particularly for businesses led by women and young people.
She concluded by emphasising that enabling SMEs to participate effectively in export trade is essential for economic diversification, deeper value chain development and converting Africa’s demographic advantage into sustained economic growth.