The United States government, through the USAID Economic Recovery and Reform Activity (USAID-ERRA) program, managed by TradeMark Africa (TMA) and funded by Feed the Future, has entered into a grant agreement exceeding US$190,000 with the Kenya Private Sector Alliance (KEPSA). This collaboration aims to assist 160 Kenyan Small and Medium-sized Enterprises (SMEs), with a focus on those led by women and youth, in capitalizing on opportunities within the African Continental Free Trade Area (AfCFTA). The AfCFTA creates a unified continental market, fostering the free flow of goods and services and promoting economic integration. The project seeks to boost the agricultural export capabilities of these SMEs by overcoming key challenges such as export readiness and trade barriers, allowing them to compete effectively in this vast market.
The initiative will enhance e-commerce capabilities through export training, collaborate with trade facilitation agencies to address trade barriers, develop market access strategies for high-value agricultural products like tea, coffee, rice, and vegetables, and increase awareness of AfCFTA trade opportunities, including the Guided Trade Initiative (GTI) and the e-tariff book. A key component is the Training of Trainers (ToT) program, designed to build lasting capacity within KEPSA to support SMEs beyond the project’s duration, ensuring sustainability. By equipping Kenyan SMEs with the necessary tools to access new markets, the project aims to improve their export competitiveness and resilience, thereby boosting economic growth through higher export volumes.
This grant is part of the five-year, US$75 million USAID-ERRA program, which promotes investment reforms, facilitates trade, and enhances regional integration by strengthening national and regional bodies in alignment with the AfCFTA and regional economic communities.
Eunice Ambiyo, Deputy Chief of Party at USAID-ERRA, highlighted the partnership’s potential, stating, “This collaboration is set to enhance the export competitiveness of Kenyan SMEs, equipping them to access new markets. This will help them navigate local economic challenges and contribute to regional economic prosperity through increased intra-African trade and investment in export-oriented value chains.”
KEPSA CEO Carole Kariuki emphasized the importance of building competencies and capacity for local industries as Africa moves towards a unified market under the AfCFTA, noting, “It is essential to develop the necessary skills and capabilities for both large and small enterprises to fully benefit from the single market arrangements.”
The partnership reflects KEPSA’s dedication to creating a business environment that enhances Kenya’s global competitiveness. KEPSA is working to help SMEs, which make up 98% of Kenyan businesses, take advantage of AfCFTA opportunities and strengthen their role in the value chains of larger enterprises in key sectors. This includes improving access to financing to engage in regional value chains and bolstering the capacity of women and youth to manage economic challenges, contributing to a thriving and integrated African economy.
