As Africa pursues deeper economic integration under the African Continental Free Trade Area (AfCFTA), small and medium sized enterprises (SMEs) continue to confront systemic barriers that make cross border trade costly and complex.
At the recent 2026 Africa Prosperity Dialogues, business leader Daniel McKorley stressed that overcoming these hurdles is critical if the continent’s vibrant SME sector is to reach its potential.
McKorley, Executive Chairman of the McDan Group, pointed to persistent logistical inefficiencies, including high transport costs, lengthy border delays, and inconsistent customs procedures, as key obstacles restricting intra African commerce for smaller firms.
“If SMEs cannot trade across borders, AfCFTA will remain a beautiful document rather than a living marketplace,” he said, underlining that policy frameworks must translate into practical solutions for businesses on the ground.
These challenges are felt deeply by African entrepreneurs.
For a coffee trader in Tamale, Ghana, delayed customs clearance and unpredictable transport costs often erode tight profit margins.
In Kigali, Rwandan apparel exporters say that fragmented regulatory requirements across neighbouring markets force them to scale down ambitions and focus on local demand rather than accessing larger regional markets.
McKorley’s comments shed light on a structural problem that goes beyond policy rhetoric: inadequate infrastructure and fragmented logistics networks continue to stifle SMEs’ growth.
Experts note that inefficient transport corridors and border procedures can add significant time and cost to trade, discouraging many businesses from venturing beyond national borders.
To tackle these barriers, McKorley and other stakeholders at the Dialogue stressed the importance of investing in better connectivity, from roads and ports to streamlined digital customs systems, and forging closer collaboration between the public and private sectors.
Without these practical measures, many African SMEs risk being excluded from the very trade opportunities AfCFTA promises to unlock
Source: Classfmonline.com
McKorley calls for smarter infrastructure to boost African SMEs
