Ghanaian Small and Medium-Scale Enterprises (SMEs') Readiness for African Continental Free Trade Area (AfCFTA) Implementation

Abstract

This paper seeks to assess Ghanaian Small and Medium-Scale Enterprises (SMEs') readiness for the African Continental Free Trade Area (AfCFTA) Implementation. The research instrument used to collect data was questionnaires and the study employed descriptive research design. The study randomly selected 250 SMEs from a population of 480 SMEs that were registered members of the Ghana National Chamber of Commerce and Industry, Cape Coast Branch and operating within manufacturing, pharmaceutical, herbal, tourism, hospitality, food and beverage, agribusiness, garment, leather, and textiles. Data collected from the SMEs was analysed using SPSS, version 28. The findings from the study shows that, there is a significant gap between Ghanaian SMEs' readiness for AfCFTA implementation. The study finds out that although majority of SMEs are capable of innovation and developing new products, they also have limited knowledge of export documentation, trade information and infrastructure, trade finance, and funding for expansion. They also have low knowledge and lack a basic understanding of the benefits of AfCFTA, its advantages, components, protocols, and Rules of Origin. The study again revealed that the obstacles facing Ghanaian SMEs exportation are high cost of production, border delays, poor infrastructure, high inflation, difficulty in accessing credit, and language problems. Based on these findings, the study recommended that SMEs needs to be retooled particularly in the area of AfCFTA Rules of Origin, its objectives, components, and Ghana’s trade policy to improve their readiness for AfCFTA implementation. Again, businesses should concentrate more on value addition, and be dedicated to looking for ways to enhance their current or existing products to outperform comparable products from other African nations.