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, according to business leader Daniel McKorley speaking at the 2026 Africa Prosperity Dialogues held in Accra.
McKorley, Executive Chairman of the McDan Group, addressed delegates on Thursday, February 5, 2026, at the Accra International Conference Centre (AICC) during Day 2 of the three day summit, pointing 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.
According to McKorley, if SMEs cannot trade across borders, AfCFTA will remain a beautiful document rather than a living marketplace. He emphasized that policy frameworks must translate into practical solutions for businesses on the ground, warning that without concrete action, the continental free trade agreement risks failing to deliver on its promise of regional economic integration.
These challenges are experienced daily by African entrepreneurs across the continent. For coffee traders in Tamale, Ghana, delayed customs clearance and unpredictable transport costs often erode tight profit margins. In Kigali, Rwandan apparel exporters report that fragmented regulatory requirements across neighboring markets force them to scale down ambitions and focus on local demand rather than accessing larger regional markets.
McKorley’s comments highlighted a structural problem that extends beyond policy rhetoric. Inadequate infrastructure and fragmented logistics networks continue to stifle SMEs’ growth potential. 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.
The business leader stressed that small and medium sized enterprises are not a side story in Africa’s economy but are the economy itself, providing up to 80 percent of jobs across the continent. Despite this central role, SMEs face significant barriers including high transport costs, inconsistent customs processes and fragmented regulations that often make moving goods within Africa more expensive than shipping to other continents.
McKorley revealed that he has worked in logistics and shipping for three decades and described the challenges as a system problem, not a market problem. He called for digital systems, one stop shops at border posts and mutual recognition of standards to harmonize trade practices. McKorley emphasized that harmonization is not a technical detail but the difference between a small business scaling or shutting down.
To tackle these barriers, McKorley and other stakeholders at the Dialogues stressed the importance of investing in better connectivity, from roads and ports to streamlined digital customs systems, alongside closer collaboration between public and private sectors. Without these practical measures, many African SMEs risk being excluded from the very trade opportunities AfCFTA promises to unlock.
The McDan Group has taken proactive steps to enhance connectivity within Africa, including revival of the Black Star Line shipping initiative and establishment of the Conduct Trading Company, aimed at facilitating cargo movement across the continent. McKorley stressed that without infrastructure including ships, trucks, ports, rails and logistic networks, trade cannot thrive.
Highlighting Africa’s demographic and economic potential, McKorley noted that by 2050, one out of every four people will be African. The continent has the youngest workforce on earth, rising innovation hubs, expanding cities and a continental market now unified under AfCFTA. Despite this potential, McKorley warned that intra African trade still lags at 15 to 18 percent of total trade, compared with nearly 60 percent in Asia and 70 percent in Europe.
During his address, McKorley also announced that the McDan Group has supported over 5,000 women entrepreneurs across Africa through interest free loans and capacity building programs. He emphasized that women own about a third of formal businesses and up to 80 to 90 percent of informal businesses, yet they face some of the highest barriers to finance. He described this as not just a gender issue but an economic inefficiency, stating that supporting these women is supporting Africa’s growth.
Vice President Professor Jane Naana Opoku Agyemang, who also spoke at the Dialogues, noted that fewer than 20 percent of African SMEs currently engage in export trade, citing limited access to finance, market linkages and structural constraints as major impediments. She emphasized the need for coordinated action to address systemic barriers facing women and youth led enterprises.
The 2026 Africa Prosperity Dialogues, held from February 4 to 6, 2026, brought together political and business leaders, policymakers, investors and entrepreneurs under the theme of empowering SMEs, women and youth in Africa’s single market. The summit aimed to chart actionable strategies that advance the implementation of AfCFTA and create practical pathways for inclusive economic growth.
McKorley concluded by calling for stronger collaboration among governments, investors, financial institutions and the private sector to translate AfCFTA into tangible outcomes. He urged governments to remove trade barriers and simplify regulations, investors to design financial products suited to SMEs and startups, and large companies to integrate smaller firms into their supply chains.
McKorley stated that if African countries implement these measures effectively, a small agro processor in Tamale, a fashion entrepreneur in Nairobi or a tech startup in Kigali will not think of themselves as local businesses but will think and operate as African businesses. He emphasized that ecosystems build industries, not isolated successes, and that Africa’s single market can generate jobs, deepen industrialization and keep wealth circulating within the continent.
