Kenyan Small and Medium-sized Enterprises owned by women and youth will benefit from a $540,000 (Sh69.5 million) support programme being implemented by Trademark Africa, to expand their reach in the continent.
This is under the British High Commission’s Regional Economic Development for Investment and Trade (REDIT) Programme.
TradeMark Africa (TMA) and the British High Commission are working with the Kenya National Chamber of Commerce and Industry (KNCCI) and the Kenya Association of Manufacturers (KAM).
The collaboration is aimed at facilitating sustainable inclusive growth by engaging 210 SMEs to leverage opportunities in the African Continental Free Trade Area (AfCFTA), the partners announced on Tuesday during the KNCCI Exporters’ Roundtable in Nairobi.
AfCFTA represents a transformative effort to fast-track trade and economic integration and transformation in Africa by harnessing the continent's collective GDP of $3.4 trillion (Sh437. 8 trillion) and a population of 1.3 billion.
It is envisioned to significantly enhance intra-African trade, which currently constitutes about 15 per cent of Africa's total exports, by focusing among others, supporting industrialisation, diversifying exports, and fostering job creation, economic growth, and long-term prosperity.
The partnership will address bottlenecks such as high costs of operations, limited market access, inadequate market information and poor access to credit, which hamper SMEs from capitalising fully on the potential of the AfCFTA.
The signing of the partnership was officiated by Industry PS Juma Mukhwana, who reiterated the government’s support.
“We are thrilled about the potential for these partnerships to catalyse innovation, enhance competitive advantage, and elevate our presence in the global market,” Mukhwana said.
British High Commissioner Neil Wigan said: “We are proud to partner to ensure that hard-working Kenyans and particularly women and young people can reach their potential and make a success of their innovative and diverse businesses. This is another brilliant example of how the UK-Kenya partnership is bringing real benefits to Kenya and its people going far, together.”
According to TMA Country Director Ahmed Farah, the programme is not only aimed at increasing the number of Kenyan SMEs exporting under AfCFTA, but also to support them in diversifying their export products.
“This will ultimately boost the volume and value of Kenyan exports, thereby strengthening the country’s economic resilience,” Farah said.
According to the Kenya National Bureau of statistics, SMEs account for approximately 98 per cent of businesses in Kenya, accounting for over 30 per cent of jobs annually.
KNCCI President Erick Rutto reiterated the importance of supporting SMEs to enhance their capacity and give them a competitive edge in the regional market.
“SMEs are the backbone of Kenya’s economy and the continent at large. By helping them leverage the opportunities provided by the AfCFTA, we anticipate job creation opportunities, poverty reduction, and sustainable development in Kenya and across the region,” he noted.
KAM acting CEO Tobias Alando said the successful implementation of the initiative will have a transformative impact on Kenya’s trade dynamics, both within the AfCFTA and globally.
“We are confident that the interventions outlined in this partnership will equip our SMEs with the necessary tools to thrive in a competitive marketplace,” Alando said.
Following a comprehensive situational analysis that will be conducted to assess the current state of Kenyan SMEs and their readiness for AfCFTA participation, tailor-made capacity-building approaches will be developed to educate SMEs about AfCFTA provisions, export procedures, standards compliance, and market opportunities.
The partnership will also facilitate market access by addressing non-tariff barriers (NTBs), providing market information, business and market linkages and trade promotion opportunities for the SMEs as part of AfCFTA’s mission to deepen intra-African trade.
