Rwandan President Paul Kagame has called on African governments to prioritize the growth of Small and Medium Enterprises (SMEs) as a key pillar in the implementation of the African Continental Free Trade Area (AfCFTA). He emphasized that businesses owned by women and youth are vital to the continent’s economic future and should be supported to expand.
Kagame made the remarks while officially opening Biashara Afrika 2024, a three-day forum themed “Dare to Invent the Future of the AfCFTA,” which is focused on building regional value chains and establishing stronger supply networks across Africa.
“SMEs are the backbone of Africa’s economy, especially those owned by women and young people,” Kagame said. “But they should not remain small. They need to grow, and governments must create an enabling environment to support this growth.”
While lauding the progress made so far in implementing the AfCFTA, Kagame noted that Africa still faces significant challenges. He urged governments to remove non-tariff barriers, reduce the high costs of logistics and flights, and improve cross-border movement, which remains a major obstacle.
“Fast-tracking AfCFTA requires fixing political and governance systems, particularly by addressing the challenge of movement within and across borders,” he added.
Wamkele Mene, Secretary General of the AfCFTA Secretariat, acknowledged that meaningful trade has commenced under the AfCFTA’s provisions, but he noted that trade volumes remain low. He identified key obstacles, including high trade finance costs, inadequate infrastructure, and reliance on imports, particularly in the pharmaceutical sector.
“Although the task may seem daunting, we cannot step back,” Mene said.
As of October 2024, 48 countries have ratified the AfCFTA agreement, and all protocols have been finalized. Under the Guided Trade Initiative launched in 2022, eight countries have begun trading, with that number expected to increase to 39 by the end of the year.
Monique Nsazabaganwa, Deputy Chairperson of the African Union Commission, urged greater collaboration between public and private sectors, including financial institutions. She emphasized that the AfCFTA has the potential to turn Africa into an economic powerhouse but stressed that support for youth- and women-led enterprises is critical for its success.
“AfCFTA represents a beacon of hope with the potential to create wealth and industrialize the continent,” Nsazabaganwa said.
The Biashara Afrika 2024 forum is expected to further discussions on unlocking the full potential of the AfCFTA and fostering stronger ties across African markets.
