SMEs to benefit from new drive to boost intra-Africa trade

When Chief Executive officer of East Africa Chamber of Commerce, Charles Kahuthu [wearing white face mask] was joined by Mombasa County officials to light the Africa trade torch a long Moi Avenue in Mombasa on Jan 20, 2021. [Omondi Onyango, Standard]

Manufacturers, small and medium enterprises (SMEs), and exporters are set to benefit from a new initiative aimed at increasing intra-African trade.

Online marketplace Real Sources Africa in collaboration with other regional agencies has unveiled TradeConnect Africa, which aims to mobilise and transport 1,000 containers of diverse goods across the continent over the next 12 months.

This is expected to catalyse regional integration within the African Continental Free Trade Area (AfCFTA) framework.

"We are igniting a new era for Africa-one of bold ambition, unstoppable innovation, and a shared future where African enterprise knows no limits," said Real Sources Africa chief executive Felix Chege during the launch on Thursday.

The initiative's core objective is to streamline logistics and supply chain operations, expand financial inclusion, and reduce trade barriers to strengthen African products' competitiveness in the regional market.

"This aligns with AfCFTA's mission to foster a dynamic, unified African market, promoting long-term regional economic integration," said Chege.

The firm has partnered with the AfCFTA Secretariat and the Ministry of Cooperatives and Micro, Small, and Medium Enterprises Development to ensure pan-African integration and alignment with national and regional priorities.

The project has also partnered with the Kenya Export Promotion and Branding Agency to connect the initiative to relevant markets and mobilise support across the continent.

Other partners for the project funded by the British High Commission include Kenya National Chamber of Commerce and Industry and the Micro and Small Enterprises Authority, which is aimed at supporting SME involvement.

The first phase of TradeConnect Africa will mark the first shipment of goods to the Democratic Republic of Congo, South Sudan, and Zambia in what Real Sources Africa said signifies a commitment to transforming African trade by enhancing connectivity, efficiency, and competitiveness in the regional market.

It will also streamline logistics and supply chain management by enhancing efficiency to ease the movement of goods.

Additionally, it will improve access to trade finance for African businesses and empower SMEs, manufacturers, and exporters by lowering trade barriers hence boosting the competitiveness of African products.

The project is also set to promote regional integration under AfCFTA.

According to a 2020 World Bank report, implementation of AfCFTA would boost Africa's income by $450 billion (Sh58 trillion) by 2035.