A new report by the Pan-African Manufacturers Association (PAMA) has revealed that 34 per cent of Small and Medium-scale Industries (SMIs) across Africa consider poor infrastructure and weak logistics as the biggest barriers preventing them from fully benefiting from the African Continental Free Trade Area (AfCFTA).
The report, titled ‘African Continental Free Trade Area: Impact and Opportunities Assessment for Africa’s Small and Medium-scale Industries’, draws from a survey of 207 manufacturing firms in sectors such as food and beverages, textiles, plastics, and chemicals. It highlights persistent structural challenges that continue to restrict the continent’s manufacturing sector from maximizing the potential of a unified African market.
While 96 per cent of the SMIs surveyed expressed interest in participating in intra-African trade, the report notes that key hurdles—including inefficient transport infrastructure, limited logistics networks, and complex border processes—undermine their ability to do so.
PAMA stated, “The full realisation of AfCFTA’s potential largely depends on strategic interventions that support the growth and active participation of SMIs in the scheme.”
Beyond infrastructure, 22 per cent of respondents flagged financial difficulties—including unstable foreign exchange and a lack of export financing—as major constraints. Another 26 per cent admitted to having no understanding of the AfCFTA protocols, pointing to a significant awareness gap among African manufacturers.
Other challenges include customs bureaucracy, product standardisation issues, low production capacity, and weak access to market intelligence.
To address these issues, PAMA recommends a multi-pronged approach involving infrastructure investments, simplified trade and regulatory processes, financial support mechanisms, and targeted capacity-building initiatives. The report also advises governments to encourage export clustering for SMIs with similar products to drive economies of scale.
It called for clear and enforceable regulatory frameworks to ensure smaller firms are not edged out by larger, more dominant players in the continental trade space. “There is a need to mitigate the risks of unfair competition, particularly from larger firms or industries,” the report stated.
The association urged policymakers, development institutions, and private sector stakeholders to act swiftly to remove these obstacles and create an enabling environment for SMIs to thrive under AfCFTA.
