AfCFTA: Border Delays Pose Major Challenges for Women and Youth-Led Businesses——As Ghana marks the fifth anniversary of the African Continental Free Trade Area (AfCFTA), a report by the United Nations Development Programme (UNDP) has highlighted how border inefficiencies are undermining the potential benefits of the trade agreement, particularly for women and youth-led businesses.
According to the UNDP, investigations conducted at the Aflao and Elubo borders revealed that high customs duties, extortion risks, and reliance on middlemen pushed many traders into informal cross-border activities.
The report explained that this informal approach not only reduces government revenue but also limits the ability of small businesses to benefit from AfCFTA’s expansive market opportunities.
Ms. Jemima Michael, a Programmes Associate at the UNDP, noted that inadequate infrastructure, poor logistics, and limited storage facilities severely impacted trade efficiency.
Further, the lack of proper facilities disproportionately affects small businesses led by women and youth.
She explained that, “many women and youth-led businesses face difficulties accessing formal trade channels because of the absence of adequate infrastructure and the need to make informal payments to facilitate trade,” “These barriers prevented them from fully leveraging the opportunities AfCFTA presents,” she added.
Despite AfCFTA’s promise to create a unified market for Africa, women and youth-led businesses are facing significant hurdles in navigating the complex and often corrupt processes at border points.
The UNDP’s findings revealed that these enterprises lack the necessary resources to handle delays, rising costs, and security concerns, making them vulnerable in a competitive market.
Mr. Divine Kutortse, Programme Manager at the AfCFTA National Coordinating Office, acknowledged the challenges but reinforced Ghana’s commitment to the AfCFTA vision.
“When we talk about economic growth, it must be inclusive. If women and young entrepreneurs can’t participate fully, the broader vision of AfCFTA will not be achieved,” he emphasized.
To address these challenges, the UNDP has recommended investments in modern border infrastructure, digital trade facilitation tools, enhanced security measures, and a reduction in informal payments.
It has also streamlined customs procedures and increasing financial and networking support for women and youth-led businesses.
For Ghana to truly benefit from AfCFTA, the report urged government to urgently address these border inefficiencies to create an enabling environment for all businesses, especially those led by marginalized groups.
Last Updated on March 21, 2025 by Senel Media
