New $540,000 Partnership to Empower Kenyan Women and Youth-Owned SMEs Through AfCFTA

New $540,000 Partnership to Empower Kenyan Women and Youth-Owned SMEs Through AfCFTA

By MAXIMILLA WAFULA & PATRICK KIMANZI 

The County diary News 

03 September 2024, Nairobi– In a significant development aimed at empowering Kenya's small and medium-sized enterprises (SMEs), the British High Commission (BHC), through its Regional Economic Development for Investment and Trade (REDIT) Programme, has signed a grant agreement worth $540,000 with the Kenya National Chamber of Commerce and Industry (KNCCI) and the Kenya Association of Manufacturers (KAM). This milestone was celebrated at the KNCCI Exporters’ Roundtable, held at the Nairobi Serena Hotel.

The collaboration, spearheaded by TradeMark Africa (TMA), is set to drive sustainable and inclusive growth by engaging 210 Kenyan SMEs owned by women and youth. The partnership aims to harness the opportunities presented by the African Continental Free Trade Area (AfCFTA), a pivotal initiative designed to accelerate trade and economic integration across the continent.

AfCFTA is poised to transform Africa's economic landscape by leveraging the continent's collective GDP of $3.4 trillion and a population of 1.3 billion. With a focus on enhancing intra-African trade, which currently makes up about 15% of Africa's total exports, AfCFTA seeks to support industrialisation, diversify exports, and create job opportunities, ultimately fostering long-term economic growth and prosperity.

The partnership addresses several key challenges faced by SMEs, including high operational costs, limited market access, inadequate market information, and poor access to credit. By tackling these issues, the initiative aims to enable SMEs to fully capitalise on the potential of AfCFTA.

Dr. Juma Mukhwana, Principal Secretary for the State Department of Industry in the Ministry of Investments, Trade, and Industry (MITI), officiated the signing ceremony. He praised the partnership, stating, “This collaboration epitomizes the spirit of unity and strategic cooperation that AfCFTA encourages among African enterprises. We are particularly thrilled about the potential for these partnerships to catalyse innovation, enhance competitive advantage, and elevate our presence in the global market. This is a clear demonstration of how collective efforts and strategic alliances can significantly amplify our impact on both regional and international stages.”

Neil Wigan, the British High Commissioner to Kenya, expressed his pride in the partnership, noting, “We are proud to partner with TradeMark Africa, KNCCI, and KAM to ensure that hard-working Kenyans, particularly women and young people, can reach their potential and succeed with 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.”

Ahmed Farah, Country Director for TradeMark Africa (TMA) Kenya, emphasised the partnership’s role in boosting intra-African trade. “Our goal is not only to increase the number of Kenyan SMEs exporting under AfCFTA but also to support them in diversifying their export products. This will ultimately enhance the volume and value of Kenyan exports, thereby strengthening the country’s economic resilience,” Farah remarked.

SMEs are a crucial part of Kenya’s economy, accounting for approximately 98% of businesses and over 30% of annual jobs, according to the Kenya National Bureau of Statistics. Dr. Erick Rutto, KNCCI President, highlighted the importance of supporting these enterprises, stating, “SMEs are the backbone of Kenya’s economy and the continent at large. By helping them leverage the opportunities provided by AfCFTA, we anticipate job creation, poverty reduction, and sustainable development in Kenya and across the region.”

Tobias Alando, Acting Chief Executive and Chief Operations Officer at KAM, added, “The successful implementation of this initiative will have a transformative impact on Kenya’s trade dynamics, both within 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.”

The partnership will kick off with a comprehensive situational analysis to assess the current state of Kenyan SMEs and their readiness for AfCFTA participation. This will be followed by tailored capacity-building programmes to educate SMEs about AfCFTA provisions, export procedures, standards compliance, and market opportunities. The initiative will also address non-tariff barriers, provide market information, and facilitate business and market linkages.

The event concluded with the launch of the KNCCI Exporters’ Booklet, marking another step towards expanding Kenya’s trade opportunities.

ENDS