From Policy to Practice: Assessing the Readiness of Ghanaian Manufacturing SMEs for Continental Trade Integration
DOI:
https://doi.org/10.64261/nkedx792Keywords:
Policy to PracticeAbstract
The African Continental Free Trade Area (AfCFTA) represents a transformative opportunity for African economic integration, yet the readiness of small and medium-sized enterprises (SMEs), the backbone of most African economies, to participate in this new trading architecture remains inadequately understood. This study assesses the readiness of Ghanaian manufacturing SMEs for continental trade integration under the AfCFTA framework. Drawing on survey data from 350 manufacturing SMEs across Ghana and employing descriptive statistics, correlation analysis, and multiple regression, the research examines four dimensions: perceived opportunities, persistent challenges, digitalization and e-commerce adoption, and financial constraints. The findings reveal a significant gap between policy aspirations and firm-level realities. While 88.8% of respondents recognize AfCFTA-related opportunities particularly market access (67.1% strongly agree) and cross-border collaboration (43.1% strongly agree) financial constraints (87.2% agreement) and infrastructure deficits (89.0%) remain binding constraints. Digitalization demonstrates transformative potential (88.3% agree it enhances competitiveness) yet faces adoption barriers including cybersecurity concerns (78.9%), high technology costs (82.9%), and skills gaps (82.3%). Regression analysis identifies financial constraints as the strongest predictor of challenges faced (β = 0.406, p < 0.001), while both opportunities (β = 0.330, p < 0.001) and challenges (β = 0.284, p < 0.001) significantly predict digital adoption. The study provides empirical evidence on the SME policy implementation gap in regional trade integration, advances theoretical understanding of the drivers of digital adoption in resource-constrained contexts, and offers actionable recommendations for policymakers, financial institutions, and SME support organizations.
Keywords: AfCFTA, SMEs, manufacturing, Ghana, trade integration, digitalization, financial constraints, regional integration
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