When people think of African exports, they often picture crude oil tankers, containers of cocoa beans, or bundles of raw cotton. What is missing from this mental image is the heartbeat of any resilient economy: small and medium-sized enterprises (SMEs).
SMEs account for roughly 80% of jobs across the continent (Afreximbank, 2025). Yet they represent a small fraction of Africa’s international trade. This gap is not inevitable. It is a result of historical export models that depended on raw materials, aid dependency, and underdeveloped regional value chains. It also serves as the clearest indicator of untapped opportunity.
The African Continental Free Trade Area (AfCFTA) changes the game. With 54 markets and 1.4 billion consumers, it offers SMEs a rare chance to scale beyond borders and participate meaningfully in global value chains. However, opportunity alone is not enough. Africa must deliberately cultivate “export-ready” SMEs, firms with the skills, systems, financing, and support networks necessary to compete globally.
Why most African SMEs do not export today
Despite comprising the majority of business activity and employment in Africa, most SMEs are confined to local or national markets. Several structural barriers hinder their ability to expand their reach.
High compliance costs
Meeting international product standards can be costly and technically complicated. For example, exporting yam flour to Europe may require certifications for pesticide levels, allergen labelling, and traceability protocols.
Limited market information
Many SMEs operate in information vacuums. They lack real-time data about export demand, pricing dynamics, regulatory updates, and changing consumer preferences abroad.
Fragmented supply chains
Logistics systems in many African countries still function as isolated entities. SMEs encounter challenges in accessing cold storage, dependable trucking networks, or cost-effective shipping solutions. This adversely affects time-sensitive or perishable exports in particular.
Credit constraints
Without formal collateral, credit histories, or knowledge of export financing tools, SMEs often struggle to secure the capital needed for expansion. Even those that succeed encounter high interest rates and brief repayment timelines.
A 2024 survey by the African Trade Policy Centre found that fewer than 20% of African SMEs have ever attempted to export, citing a combination of regulatory burdens, financial gaps, and a lack of guidance as the primary deterrents (AfCFTA Secretariat, 2025).
AfCFTA’s breakthrough: Levelled playing fields
AfCFTA’s Guided Trade Initiative, launched in 2022 in Ghana, offers a glimpse of what is possible. The agreement significantly reduces friction at borders by simplifying customs procedures, introducing a single certificate of origin, and harmonising product standards.
Approximately 40 countries are already shipping under the new framework. Early data indicates that participating firms have reduced export documentation costs by up to 35% (Afreximbank, 2025).
For SMEs, this could be transformative. This means that a company in Tamale or Kumasi can comply once and access 54 markets with that same certification, provided it meets product quality and delivery expectations.
However, simply “opening the gates” is not enough. Without intentional capacity-building and market linkage efforts, larger firms will continue to dominate cross-border flows while SMEs remain sidelined.
What makes an SME export-ready?
Export-readiness involves more than just having a good product. It requires establishing a coordinated ecosystem within a business, one that connects strategy with execution and vision with discipline. A framework of interlocking capabilities must be strengthened.
Documentation literacy
Understanding export paperwork, certificates of origin, customs codes, harmonised system (HS) codes, and trade finance tools like letters of credit or export guarantees is crucial. SMEs must know how to navigate tariff classifications and non-tariff barriers efficiently. Even simple errors in product descriptions or missing signatures can delay clearance by weeks.
Quality assurance systems
Beyond one-off certifications, SMEs must institutionalise systems that ensure consistent quality. This development involves creating standard operating procedures (SOPs), traceability records, and conducting internal audits. For agribusinesses, it may include Good Agricultural Practices (GAP); for manufacturing, ISO standards or HACCP protocols. Buyers in Europe or North America expect documented evidence, not just verbal assurances.
Packaging and branding
Export packaging must protect the product, comply with regulations, and appeal to the buyer. It may involve adopting multilayer packaging, tamper-proof seals, and multilingual labelling. Branding is equally critical. How a product looks, feels, and tells a story matters. Whether it is organic shea butter from Tamale or ceramic tiles from Sekondi, the brand narrative must resonate with distant buyers.
After-sales service capacity
Exporting is not the end of the transaction; it’s the beginning of a relationship. Distributors and retailers desire clear return policies, support with shelf positioning, and occasional feedback loops. Even a single point of contact, like a WhatsApp number or export liaison email, can make the difference between repeat orders and silence.
Digital visibility
Today’s buyers search online. SMEs must have at least a functional website, optimised search terms, and updated profiles on B2B marketplaces such as Alibaba, TradeKey, or specialised African trade platforms. Social proof (testimonials, photos, partnerships) enhances credibility. In the digital age, visibility is no longer a bonus but a necessity.
Production scalability
Can the SME fulfil an order of 10,000 units? How quickly can it ramp up if a buyer doubles their order? Many promising SMEs miss opportunities because they can’t demonstrate the operational readiness to scale production, source raw materials in bulk, or meet tight delivery windows.
Legal readiness
Exporting also introduces risks like currency fluctuations, contractual disagreements, and logistics disputes. SMEs must have access to legal templates, support for contract negotiations, and basic training in intellectual property rights, incoterms, and dispute resolution mechanisms.
And then there is mindset. Many SMEs still view export as a risky leap rather than a long-term growth strategy. Shifting this psychology is as critical as any logistical fix. Business owners need to see themselves as players in a continental ecosystem, not just as traders at a local market. They need to dream bigger, but they must also be equipped to execute just as effectively.
Practical strategies to grow Africa’s export-ready SME base
National Export Readiness Academies
Public-private partnerships can provide modular training on trade logistics, digital marketing, compliance documentation, and product quality. This training can be delivered in person or through mobile apps.
Access to pre-export finance
Specialised credit lines, backed by partial guarantees and linked to AfCFTA trade routes, can assist SMEs in covering initial costs such as product testing, legal support, or compliance labelling. Blended finance, like combining public, donor, and private capital, can mitigate risk.
SME-focused trade missions
Governments should prioritise small business participation in outbound trade delegations. Tailored missions to regional hubs, such as Lagos, Abidjan, or Nairobi, can provide matchmaking, sample pitching, and access to diaspora-led retail networks.
One-stop trade portals
A national digital platform that integrates customs processes, market directories, trade advisory tools, and access to logistics providers can help reduce the information overload that SMEs face. The Ghana Export Promotion Authority (GEPA) has made strides in this area, but the uptake must be expanded.
SDG-linked export incentives
SMEs whose exports meet certain sustainability, gender equity, or green standards may receive rebates, recognition, or preferential procurement access. This fosters responsible growth aligned with long-term development goals.
SMEs are the continental champions
Africa’s prosperity will not be built solely on minerals, large infrastructure projects, or multinational capital. It will be built by millions of SMEs that are enterprising, agile, and locally rooted, producing, branding, and exporting goods that reflect the continent’s ingenuity and resilience.
AfCFTA provides the highway. But if we want SMEs to drive on it, we must give them vehicles, maps, fuel, and the driving lessons necessary to make the journey.
The future is not about extraction; it’s about connection. Connection across borders, between sectors, and among small producers and big systems.
Let’s invest our time and resources where it matters most. Let’s invest in the businesses already building Africa from the ground up.
I hope you found this article both insightful and enjoyable. Your feedback is greatly valued and appreciated. I welcome any suggestions for topics you would like me to cover or provide insights on. You can schedule a meeting with me through my Calendly at www.calendly.com/maxwellampong. Alternatively, connect with me through various channels on my Linktree page at www.linktr.ee/themax. Subscribe to the ‘Entrepreneur In You’newsletter here: https://lnkd.in/d-hgCVPy.
If you want to explore this subject matter more thoroughly, I have compiled a list of reading materials and references that provide greater detail and focus on particular areas.
Afreximbank, Annual Trade Report 2024: Intra-African Trade Trends (Afreximbank 2025) 17–18
AfCFTA Secretariat, ‘Guided Trade Initiative Dashboard’ (2025) https://afcfta.au/int/GTI accessed 23 April 2025
African Trade Policy Centre, Survey on SME Export Participation in Africa 2024 (ATPC/UNECA 2025)
World Bank, Doing Business Simulation for Ghana 2024 (World Bank 2024) section 4
World Economic Forum, Scaling SMEs in Africa: Trade and Competitiveness (WEF Report 2024) https://www.weforum.org/reports/scaling-smes-africa-2024 accessed 23 April 2025
I wish you a highly productive and successful week ahead!
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The author, Dr. Maxwell Ampong, serves as the CEO of Maxwell Investments Group. He is also an Honorary Curator at the Ghana National Museum and the Official Business Advisor with Ghana’s largest agricultural trade union under Ghana’s Trade Union Congress (TUC). Founder of WellMax Inclusive Insurance and WellMax Micro-Credit, Dr. Ampong writes on relevant economic topics and provides general perspective pieces. ‘Entrepreneur In You’ operates under the auspices of the Africa School of Entrepreneurship, an initiative of Maxwell Investments Group.
Disclaimer: The views, thoughts, and opinions expressed in this article are solely those of the author, Dr. Maxwell Ampong, and do not necessarily reflect the official policy, position, or beliefs of Maxwell Investments Group or any of its affiliates. Any references to policy or regulation reflect the author’s interpretation and are not intended to represent the formal stance of Maxwell Investments Group. This content is provided for informational purposes only and does not constitute legal, financial, or investment advice. Readers should seek independent advice before making any decisions based on this material. Maxwell Investments Group assumes no responsibility or liability for any errors or omissions in the content or for any actions taken based on the information provided.
