Ishmael Yamson & Associates advocates for long-term strategic partnerships to boost SME growth under AfCFTA
Chief Executive Officer (CEO) of Ishmael Yamson & Associates, Harry Yamson, has stated the need for long term strategic partnerships for SMEs particularly those involved in non-traditional exports (NTEs) under the African Continental Free Trade Area (AfCFTA) agreement.
According to Mr Yamson, strategic partnerships between investors or larger businesses and SMEs will ensure sustainability and growth in exports and profitability of SMEs trading under the AfCFTA.
“We need long-term strategic partnerships for SMEs, because this will give them stability and allow them to plan.
“If GEPA for instance can get partners under the AfCFTA or even Europe to bring stability, then there will be sustainable growth in exports and profitability,” quipped Mr Yamson.
He made the assertion speaking during the NorvanReports and Ishmael Yamson & Associates X Space Discussion on the topic, “Harnessing the Power of Local for Global Success: Exports from Ghana,” on Sunday, June 16.
Ghana in 2023 earned some $1.77bn from non-traditional exports (NTEs) to various Regional Economic Communities (RECs) on the Continent under the Africa Continental Free Trade Area (AfCFTA) agreement.
Trade data provided by the Ghana Export Promotion Authority (GEPA) in its 2023 NTEs report indicate that the Economic Community of West African States (ECOWAS) dominates the AfCFTA market for NTEs with a substantial share of 94.47%.
The ECOWAS market analysis reveals significant growth in trade, with Burkina Faso emerging as the top consumer, showing an increase to $508m from $425m in the previous year.
Cote d’Ivoire also displayed a notable rise with its consumption jumping from $150m in 2022 to $289m in 2023.
Speaking further during the X Space Discussion, Mr Yamson averred SMEs in Ghana who want to trade under the AfCFTA need to do more work to ensure they become more visible and also find distribution channels in other markets to benefit fully from the AfCFTA.
Asserting that SMEs need to differentiate themselves from one another in order to stand out.
“We have done well with our neighbours – Burkina Faso, Togo and Cote d’Ivoire – but our SMEs, large businesses need to go beyond our neighbours into other markets such as South Africa and Kenya,” he remarked, further noting that businesses need to differentiate themselves under the AfCFTA.
Speaking further on accessing markets including the European market, Mr Yamson emphasized the need for businesses from the African Continent to ensure high-quality standards.
“We need to build on our technology to meet the quality standards of our partners and that will allow us to enter foreign markets easily and even let the businesses enjoy premiums on the good or service,” he noted.
The 2023 AfCFTA Situational Report by Ishmael Yamson & Associates underscores the transformative potential of the African Continental Free Trade Area (AfCFTA) for Ghana, identifying it as a pivotal factor in enhancing the country’s investment attractiveness.
The report emphasizes the necessity of a robust legal framework, sustained political support, visionary leadership, strong institutional capacities, stakeholder engagement, and effective coordination for successful implementation.
Ghana’s ambitious implementation plan faces several hurdles that could impede its progress. Chief among these are slow updates on implementation, the discontinuation of programs due to changes in government, and a pervasive lack of trade information.
