Kenyan SMEs to gain Sh25m grants to boost African trade competitiveness
By Vincent Ombati |
These enterprises will receive training that will help them scale up their e-commerce capabilities, especially in the agricultural sector.
Over 160 Small and Medium-sized Enterprises (SMEs), primarily operated by women and youth, are set to benefit from more than Sh25 million in grants. This funding aims to enhance their competitiveness in the expansive African Continental Free Trade Area (AfCFTA) market by facilitating connections between buyers and sellers across the continent.
During the grant agreement signing, Carole Kariuki, CEO of the Kenya Private Sector Alliance (Kepsa), highlighted that Africa has embarked on the journey towards fully implementing a common market under AfCFTA. She noted that most recipients would use the funds to boost their export capabilities. The initiative is supported by the US government through USAID's Economic Recovery & Reform Activity (USAID-ERRA) program.
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"The requisite competencies and capacity for local industrial activities by both large and small enterprises must be built to enable all countries to benefit from the single market arrangements," she said.
These enterprises will receive training that will help them scale up their e-commerce capabilities, especially in the agricultural sector. The initiative will roll up several measures such as the implementation of export readiness and the development of market access strategies.
The Usaid-Erra program addresses critical challenges like trade barriers that hinder SMEs from thriving in an expanded market. This will not only increase the export volumes of these businesses but will also stimulate economic growth.
Usaid-Erra Deputy Chief of Party Eunice Ambiyo termed the initiative as having the potential to improve the economic growth of the continent.
"This partnership is poised to improve the export competitiveness of Kenyan SMEs, empowering them with the tools to access new markets. This will not only help them withstand local economic challenges but also contribute to broader regional economic prosperity through increased intra-African trade and investment in export-oriented value chains," Ambiyo said.
Under the AfCFTA, there is promotion of free movement of goods and services and economic integration.
Empowering Kenyan SMEs with the tools to access alternative markets will increase their export competitiveness and resilience and also stimulate economic growth through increased export volumes.
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