THE African Continental Free Trade Area (AfCFTA) Secretariat and United Bank for Africa (UBA) have signed a memorandum of understanding (MoU) to provide support for small and medium-sized enterprises (SMEs) to actively engage in intra-African trade. The partnership aims to enhance the capacity of qualified African SMEs and has allocated $6bn for this purpose under the AfCFTA.
During the signing ceremony, Wamkele Mene, Secretary-General of the AfCFTA Secretariat, highlighted the shared vision of the AfCFTA and UBA to bolster the African economy by strengthening SMEs and recognizing their pivotal role as drivers of economic growth. The partnership will specifically focus on four key sectors: pharmaceuticals, transport and logistics, automotive, and agriculture and agro-processing. Mene said these sectors present significant opportunities for import substitution and boosting intra-continental trade, allowing SMEs to fully capitalise on the benefits of the continental free trade agreement.
Muyiwa Akinyemi, Deputy Managing Director of UBA, underlined the importance of collaborating with the AfCFTA to foster the growth of African SMEs. He stated, ‘Africa can only be developed by Africans, and SMEs are the drivers of industrialisation on the continent.’ Akinyemi further highlighted the significance of developing robust transport and logistics networks and creating market access to overcome challenges faced by SMEs, enabling them to fulfil their crucial roles in job creation, wealth generation, and poverty reduction across the continent. He concluded by expressing confidence in the transformative impact that joint efforts can have on making Africa a preferred investment destination.
This partnership between the AfCFTA Secretariat and UBA signifies a significant step towards empowering African SMEs, facilitating their integration into the intra-African trade landscape, and driving sustainable economic development on the continent.
