The African Continental Free Trade Area (AfCFTA) unlocks significant opportunities for Small and Medium Enterprises (SMEs) across Africa, especially in Ghana, by broadening their market access through wholesale trade and other avenues.
To fully harness these benefits, Ghanaian SMEs need a fair and competitive environment as they navigate the broader African market. This is where the National Coordination Office (NCO) of the AfCFTA steps in, using competition policy and local content regulations to protect and empower Ghanaian SMEs, ensuring they can compete effectively with businesses from other African countries and maximize their reach and impact under AfCFTA.
In Ghana, the National Coordination Office (NCO) for AfCFTA collaborates with key state institutions to level the playing field for Ghanaian SMEs as they compete against firms from other African countries. To implement the AfCFTA’s goals effectively, the NCO works closely with the Ghana International Trade Commission (GITC).
As Ghana’s trade regulatory agency, GITC is responsible for monitoring and managing trade issues, ensuring compliance with international trade rules, and enforcing fair competition in domestic and international trade. This includes safeguarding the domestic market against unfair trade practices that could disadvantage local SMEs.
The NCO also conducts outreach and educational programs to inform Ghanaian SMEs about the competition laws under AfCFTA. By understanding and complying with these laws, Ghanaian businesses can position themselves more effectively within the AfCFTA framework.
“…the NCO uses its network of focal persons within state institutions (Food and Drugs Authority (FDA), Ghana Standards Authority (GSA), Ghana Export Promotion Authority (GEPA), and others) to ensure these State institutions understand the AfCFTA, and are abreast with happenings on the AfCFTA. This enhances the delivery of trade remedy services to the business community. Following the adoption of the Protocol on competition policy, the NCO is planning to constitute a Competition Policy Technical Working Group (TWG) to solicit relevant inputs to be incorporated into the National AfCFTA Policy Framework and Action Plan for Boosting Ghana’s Trade with Africa.”
Boosting Ghanaian SMEs Participation in the AfCFTA Market
Dr. Fareed Kwesi Arthur, the National Coordinator of the NCO, emphasizes that Ghana’s Local Content and Local Participation Regulations are key tools for enhancing Ghanaian participation in the national economy, especially in the extractive sectors like oil, gas, and mining.
According to him, these regulations, governed by key legislative instruments (L.I.s) such as Local Content and Local Participation Regulations (L.I. 2204), Petroleum (Local Content and Local Participation) Regulations, 2021 (L.I. 2435), and the Minerals and Mining (Local Content and Local Participation) Regulations, 2020 (L.I. 2431), are foundational for involving local companies in resource-rich sectors.
Meanwhile, the NCO is advocating for an expansion of these laws to include Ghana’s non-traditional export sectors. This shift is driven by the African Continental Free Trade Area (AfCFTA) agreement, which requires compliance with Rules of Origin to foster fair trade across member countries. Expanding local content requirements to the non-traditional sector is seen as crucial for strengthening Ghana’s competitiveness within AfCFTA, particularly for small and medium-sized enterprises (SMEs). By broadening local content laws, Ghana aims to ensure that more local businesses benefit from AfCFTA’s vast market, thereby promoting sustainable economic growth and job creation across diverse sectors.
With the introduction of the AfCFTA, the NCO has mounted a strong case for the whole concept of local content, which needs to be re-evaluated. “The AfCFTA permits producers to source inputs from various African countries to produce goods. As such, discussions need to move away from a nationalistic point of view to a continental one. That is, local content should now be seen as African content both for goods and service, instead of the current national bases interpretations.”
NCO’s Initiatives To Improve Competitiveness of Ghanaian SMEs
The National Coordination Office (NCO) of the AfCFTA, has launched key initiatives aimed at boosting the competitiveness of Ghanaian small and medium enterprises (SMEs) in both local and continental markets. One of these is the NCO Market Expansion Programme, which provides tailored, firm-specific support to enhance the readiness and performance of Ghanaian enterprises for trading under the AfCFTA framework.
Through this program, the NCO has identified over 1,000 Ghanaian enterprises with export potential, each of which receives specialized interventions to strengthen their operational capacity and market reach. These enterprises fall into three main categories: Category A includes companies already trading in Africa; Category B involves those exporting outside the continent; and Category C consists of companies that produce for the local market or are primarily engaged in domestic trade.
By offering targeted support, the NCO aims to build a solid foundation for Ghanaian businesses to compete and thrive in the AfCFTA market. This approach, not only empowers SMEs to access broader market opportunities, but also strengthens Ghana’s position in regional and global trade.
“The support provided by the NCO include facilitating acquisition of AfCFTA Certificate of Origin and other regulatory license, permits and certificates (LPCs), Market Readiness Trainings, and Business match-making for cross border partnerships and for development of value & supply chain partnerships.”
Considering specific strategies the NCO AfCFTA has implemented to provide Ghanaian SMEs with better market access, enabling them to expand their reach beyond local markets and tap into the broader AfCFTA opportunities, the NCO’s Coordinator stated that as part of the Market Expansion Programme under the AfCFTA Guided Trade Initiative, the NCO has organised three (3) Market Entry Expeditions to Kenya, Tanzania and Rwanda with a total of 133 enterprises from 12 sectors participating.
“The Expedition’s aim is to introduce Ghanaian businesses and their products into selected African markets and to facilitate business-to-business (B2B) partnerships between Ghanaian traders and their African counterparts. The Kenyan Expedition coincided with the launch of the Ghana Trade House in Nairobi, Kenya by the Ghana Export Promotion Authority (GEPA). About 50 Ghanaian Enterprises currently have their products in the Trade House, thus, serving the Kenyan and by extension East African market.”
Challenges Hindering SMEs Industrialization Drive
Despite their significant contribution to the Ghanaian economy, SMEs face various challenges that hinder their industrialization agenda.
Some of the challenges faced by SMEs, according to the National Coordinator include non-harmonization of standards, non-availability of affordable and timely logistics and transport services, and the non-alignment of liberalized goods by State Parties.
Considering the issue of non-harmonization of standards, the NCO is actively engaged with relevant authorities both in Ghana and in identified markets, to ensure mutual recognition of standards.
“On transport and logistics, the NCO is closely working with the Ghana Shippers Authority and other bodies to address the challenge. With regards to the non-alignment of liberalized goods by State Parties, the NCO is actively working with both the Ministry of Trade and Industry, and the AfCFTA Secretariat for resolution.”
To drive the growth and industrialization of Ghana’s SME sector, the Coordinator of the National Coordination Office (NCO) highlighted key initiatives led by the Ministry of Trade and Industry (MoTI). Among them, the One District One Factory (1D1F) initiative and the Ten-Point Industrialization Transformation Agenda stand out as significant programs dedicated to strengthening the foundations of SME development and facilitating their industrial expansion.
In addition, the Ghana Export Promotion Authority (GEPA) has developed targeted programs to foster SME growth by enabling them to reach broader export markets. Complementing these efforts, the Ghana Enterprise Agency (GEA) also offers various tailor-made support programs designed to address the specific needs of SMEs, ensuring they have the resources and skills needed for sustainable growth.
“… Our flagship programme for supporting SMEs under AfCFTA is the Market Expansion Program. So far, more than 1000 enterprises are involved in our activities across the country and over 130 have participated directly in our market expeditions.”
However, access to finance is a major hurdle for SMEs, particularly when looking to expand operations and enter new markets. As such, the Coordinator of the NCO revealed that the NCO works with financial institutions and Development partners to provide access to finance, sponsorships and other interventions needed to boost these SMEs’ productions and facilitate their entry into other markets.
“Institutions engaged include Ghana Exim Bank, Absa Bank, Republic Bank, Ecobank, Stanbic Bank, World Bank, GIZ, UNDP.”
Enhancing SMEs Capacities
The NCO undertakes a carefully crafted communication and awareness outreach program to sensitize the public on the AfCFTA with a focus on how to acquire the necessary regulatory Licenses, permits and certifications (LPCs). It does this with regulatory agencies such as a Ghana Standards Authority, Food and Drugs Authority, and Ghana Revenue Authority – Customs Division (GRA-CD)
“In addition, we also have target training sessions with Ghanaian Enterprises to prepare them for the African market and also develop and disseminate training materials/ knowledge products/ FAQ documents detailing the step-by-step process to acquire the necessary Licenses, Permits, and Certifications.”
Furthermore, the NCO has focal persons in key AfCFTA implementing Agencies including the Ghana Standards Authority (GSA), and Food and Drugs Authority (FDA). These focal persons are the conduits for information sharing and expedite services relating to regulatory requirements, trade standards and so on.
The NCO, moreover, is in the process of developing an online information portal that will serve this purpose. “As you have rightly noted, information is vital for good decision making and so under the Ghana’s Policy Framework and Action Plan for AfCFTA implementation, information is highlighted as a priority.”
Besides, the NCO undertakes training programs and workshops to enhance the capacities of SMEs in areas such as quality control and export readiness. The NCO also collaborates with Development Partners to undertake training sessions to enhance the competitiveness of the Ghanaian private sector. The trainings cover areas such as AfCFTA regulatory and compliance, Market access (delivering goods to African markets) and Financing intra-African Trade (Export Trade Financing options), etc.
Reducing Non-Tariff Barriers Disproportionately Affecting SMEs
Dr. Fareed Arthur, The National Coordinator of the NCO AfCFTA explained steps taken by his outfit to reduce non-tariff barriers which is disproportionally affecting SMEs. He recounted that in January 2022, the NCO together with experts from MoTI, AfCFTA Secretariat, GRA-Customs Division and TradeMark East Africa (now TradeMark Africa) undertook a corridor review mission/ exercise along the Abidjan-Lagos corridor.
“The purpose was to assess the impact of Non-tariff Barriers (NTBs) by gathering first-hand information from traders and Customs Officers at the borders, assess infrastructural development, and to identify areas in need of interventions vital for improved corridor performance. As a result of this assessment exercise, the AfCFTA Secretariat with technical support from TradeMark Africa is implementing a programme to address challenges along the Abidjan-Lagos Corridor. The corridor-wide support programme, will be rolled-out at the Akano-Noe Joint Border Post.”
Meanwhile, in developing the National AfCFTA Policy Framework and Action Plan for Boosting Ghana’s Trade in Africa, inputs from SMEs and various Private Sector Associations were solicited and incorporated into the document. “The Office also continues to engage stakeholders to understand the challenges and to work together to seek solutions.”
Success Stories of NCO’s Support for Ghanaian SMEs
The AfCFTA Market Expeditions, organized by the National Coordination Office (NCO), have significantly benefited Ghanaian SMEs, showcasing notable success stories of businesses expanding across African borders. Among these are Amonu Chocolate, Kasapreko Company Ltd, and IFOK Handmade Shoes, which have each capitalized on new opportunities within the AfCFTA market.
Amonu Chocolate, a Ghanaian chocolate producer, recently partnered with a Kenyan company to create a new line of chocolate bars infused with Kenyan macadamia nuts, blending flavors from two African countries and expanding its appeal across markets.
Kasapreko Company Ltd, a leading beverage company in Ghana, has furthered its reach by establishing an outlet in Kenya, facilitating access to East African consumers. Besides, IFOK Handmade Shoes has partnered with a Kenyan leather supplier, enabling the company to source quality materials for footwear production in Ghana. Through the NCO’s support, Ghanaian SMEs are not only broadening their market reach but also fostering economic cooperation within Africa.