USAID and KEPSA Announce Partnership to Boost Kenyan SME Competitiveness under AfCFTA

The United States Government, through the USAID Economic Recovery and Reform Activity (USAID-ERRA) program, implemented by TradeMark Africa (TMA) and funded by Feed the Future, signed a $199,988 grant agreement with the Kenya Private Sector Alliance (KEPSA).

Through this partnership, 160 Kenyan small and medium-sized enterprises (SMEs), particularly those owned by women and youth, will be able to capitalise on the opportunities created by the African Continental Free Trade Area (AfCFTA) by connecting buyers and sellers across the continent.

The AfCFTA provides a single continental market, promoting the free movement of goods and services and economic integration. The initiative aims to increase the agricultural export opportunities of these SMEs by addressing critical challenges such as export readiness and trade barriers, enabling them to compete effectively and grow in this vast market.

The project will enhance e-commerce opportunities by providing training to prepare SMEs for export; work with trade facilitation agencies to remove trade barriers; develop and implement market access strategies tailored to high-value agricultural sectors such as tea, coffee, rice and vegetables; and raise awareness of the trade opportunities offered by the AfCFTA, such as the Guided Trade Initiative (GTI) and e-customs, through increased outreach and outreach activities.

A critical feature of this project is the Training of Trainers (ToT) which will build long-term capacity within KEPSA to support SMEs beyond the project period, ensuring long-term sustainability. Empowering Kenyan SMEs with tools to access alternative markets will not only increase their export competitiveness and resilience but also stimulate economic growth through increased export volumes.
The grant is part of a five-year, $75 million USAID-ERRA program. USAID-ERRA drives investment reforms, facilitates trade, and deepens regional integration by strengthening the capacity of national and regional bodies within the AfCFTA and Regional Economic Communities.
Eunice Ambiyo, USAID-ERRA Deputy Chief of Party, commented on the potential of the partnership: “This partnership is poised to improve the export competitiveness of Kenyan SMEs by equipping them with the tools to access new markets. This will not only help them address local economic challenges, but also contribute to broader regional economic prosperity through increased intra-African trade and investment in export-oriented value chains.”

KEPSA Director General Carole Kariuki said: “As Africa begins its journey towards full implementation of the single market under the AfCFTA, it is imperative that the necessary competencies and capacity for local industrial activity, both large and small, are built to enable all countries to benefit from the single market arrangements.”

This partnership underlines KEPSA’s commitment to delivering an enabling business environment that ensures Kenya’s global competitiveness. KEPSA positions SMEs, which constitute 98% of all businesses in Kenya, to capitalize on the opportunities offered by the AfCFTA, as well as strengthen their integration into the value chains of large enterprises in priority sectors identified by member states.

These include access to finance as a means to engage and grow in regional value chains and strengthening the regional capacity of women and youth to mitigate the effects of economic shocks, contributing to a thriving and integrated African economy.

www.usaid.gov

www.kepsa.or.ke

www.trademarkafrica.com