The United States government, through the USAID Economic Recovery and Reform Activity (USAID-ERRA) program, has formalized a grant agreement with the Kenya Private Sector Alliance (KEPSA) worth US$199,988. This initiative, funded by Feed the Future and implemented by TradeMark Africa (TMA), aims to enhance the competitiveness of 160 Kenyan Small and Medium-sized Enterprises (SMEs), with a focus on women and youth-owned businesses.
Empowering SMEs for AfCFTA Opportunities
The partnership seeks to leverage the African Continental Free Trade Area (AfCFTA) by linking Kenyan buyers and sellers with opportunities across the continent. The AfCFTA provides a unified continental market that promotes the free movement of goods and services and fosters economic integration. This project is set to improve the agricultural export capabilities of SMEs by addressing key challenges such as export readiness and trade barriers, thus enabling them to compete effectively in this expansive market.
Key Project Components
The project will focus on scaling up e-commerce capabilities through training programs that prepare SMEs for export. It will collaborate with trade facilitation agencies to overcome trade barriers and develop tailored market access strategies for high-value agricultural sectors including tea, coffee, rice, and vegetables. Additionally, efforts will be made to increase awareness of trade opportunities offered by the AfCFTA, including the Guided Trade Initiative (GTI) and the e-tariff book.
Sustainability and Long-Term Impact
A significant aspect of this project is the Training of Trainers (ToT), designed to build enduring capacity within KEPSA. This approach ensures that SMEs will receive ongoing support beyond the project’s duration, fostering long-term sustainability. By equipping Kenyan SMEs with tools to access alternative markets, the initiative aims to enhance their export competitiveness, resilience, and contribute to economic growth through increased export volumes.
Program Scope and Goals
This grant is part of the broader US$75 million USAID-ERRA program, which focuses on driving investment reforms, facilitating trade, and deepening regional integration under the frameworks of the AfCFTA and regional economic communities. Eunice Ambiyo, Deputy Chief of Party for USAID-ERRA, highlighted the partnership’s potential to boost Kenyan SMEs’ export competitiveness and contribute to regional economic prosperity through enhanced intra-African trade and investment.
KEPSA’s Vision
KEPSA CEO Carole Kariuki emphasized the importance of building competencies and capacities for local industrial activities as Africa moves towards fully implementing the AfCFTA. This partnership underscores KEPSA’s commitment to creating an enabling business environment that enhances Kenya’s global competitiveness. By empowering SMEs, which make up 98% of all businesses in Kenya, KEPSA aims to leverage AfCFTA opportunities and strengthen integration into regional value chains.
Impact on Regional Economy
The partnership also focuses on improving access to financing for SMEs and strengthening the regional capacity of women and youth to mitigate economic shocks. This contributes to a more robust and integrated African economy, positioning Kenyan SMEs to thrive within regional value chains and enhance their role in the continent’s economic growth.
