State seeks MSMEs connection to cross-border markets

The Cooperatives Ministry plans to launch a one-stop digital marketing platform to connect MSME producers, aggregators, and consumers in domestic and international markets.

The move is intended to boost market access for Kenyan MSMEs and prepare them to capitalise on the African Continental Free Trade Area (AfCFTA) by building cross-border and intra-regional trade partnerships.

Principal Secretary for Micro, Small, and Medium Enterprise Development Susan Mang’eni said that the plan involves developing a framework to support the linkage of farmers and small-scale MSMEs with priority value chain processors through subcontracting.

“The online platform will provide a link between producers, aggregators/off-takers, and the final consumers in both the domestic market and international markets. This is especially true in light of the reality that e-commerce will be a major instrument for overcoming the trade barriers faced by MSMEs,” said Mang’eni.

The PS, who was speaking at the 24th EAC MSMEs Trade Fair in Sudan, said that this structure would allow smaller producers to scale their reach by supplying larger processors, fostering growth in targeted sectors.

The event provided a platform for MSMEs to create linkages with stakeholders, including the private sector, government, and development partners, to promote entrepreneurship and trade by showcasing new technologies, opportunities, and skills.

It aims to tap into opportunities from the larger single market of the African Continental Free Trade Area (AfCFTA) of over 1.4 billion people and a GDP of over $3.5 trillion (Sh451.5 trillion).

The fair is held annually on a rotational basis in the EAC partner states, with coordination by the EAC Secretariat.

Co-operative Cabinet Secretary Wycliffe Oparanya said the government is also exploring new development plans to improve MSMEs’ awareness of digital markets and trade to sustain e-commerce.

He said the full potential of many of the micro and small enterprises is yet to be fully exploited due to a number of factors such as increased competition, the ability to adapt to rapidly changing market demand, technological change, and capacity constraints relating to knowledge, innovation, and creativity.

“Despite their significant role in developing East African economies, most MSMEs have yet to be fully integrated into the regional value chain system and the continental trading system,” said Oparanya.

The Kenyan delegation, led by the Micro and Small Enterprises Authority (MSEA), aims to leverage digital and e-commerce platforms to overcome trade barriers and enhance MSME competitiveness in the EAC region.

The EAC’s expanded market size (312 million people) and GDP (approximately $305 billion) as a result of the recent entry of DRC and Somalia adds significant impetus to the push to increase intra-EAC trade.