KEPSA, led by the Deputy CEO Mr Victor Ogalo, joined other strategic partners on 28^th March 2023 in the Public Private Dialogue (PPD) breakfast meeting to discuss the potential effects of the African Continental Free Trade Area (AfCFTA) on micro small and medium enterprises (MSMEs).  The meeting was held at a Nairobi hotel to discuss the findings and recommendations of a study on the effect of the AfCFTA on MSMEs in Kenya; establish a prerequisite for effective advocacy and channels of communication for the implementation of AfCFTA.

In her opening remarks, Ms Mary Odongo, Centre for International Private Enterprise’s (CIPE) Program Manager for Africa, welcomed participants to the meeting while questioning the AfCFTA's inclusiveness in integrating MSMEs, particularly those owned by women and youth. She advocated for private-sector solutions to local and global challenges.

Mr Ministry of Investments, Trade, and Industry representative Mr Kevin Mulama, provided a detailed update on the trade protocols and the status of AfCFTA ratification. He stated that 46 countries have already ratified, highlighting that Kenya negotiates as a bloc with the other East African Community (EAC) countries and has been able to export tea to Ghana.

The findings of a recent AfCFTA study were presented by Ms Rose Rono of TradeSmart Consult. She highlighted that the trade agreement opens up a 1.3 billion market with a combined GDP of $3.4 trillion, providing significant opportunities. She also stated that, despite the fact that MSMEs contribute significantly to the Kenyan economy, only 53.2% were aware of the regional agreement, and that unless they are supported, they may not benefit significantly.

Ms Rono concluded by recommending the simplification of administrative procedures, creating awareness and capacity building, adopting complementary measures to support women entrepreneurs, and technical support as some of the ways to increase MSME participation. She specifically advised the private sector to engage with policy and technical negotiators in order to secure support for MSMEs and to provide MSMEs with market information.

While commenting on the report, Mr Victor Ogalo called for the development of country solutions for local problems before negotiating externally. He also called for deliberate support to the Kenyan multinationals which then can carry along the MSEMs along the value chains. He highlighted the importance of political stability and integration in the trade while advocating for deeper integration within Africa.

The KEPSA Deputy CEO further called for the formalization of MSMEs, the formation of a one-stop business intelligence platform that can provide all the needed information to MSMEs and other businesses and the nurturing of a cohort of experts that can train and capacity-build the MSMEs.

Mr Ogalo was speaking at a panel discussion that interrogated the report while giving proposals and recommendations.