Author name: Dr Maxwell Ampong

When people think of African exports, they often picture crude oil tankers, containers of cocoa beans, or bundles of raw cotton. What is missing from this mental image is the heartbeat of any resilient economy: small and medium-sized enterprises (SMEs). SMEs account for roughly 80% of jobs across the continent (Afreximbank, 2025). Yet they represent a small fraction of Africa’s international trade. This gap is not inevitable. It is a result of historical export models that depended on raw materials, aid dependency, and underdeveloped regional value chains. It also serves as the clearest indicator of untapped opportunity. The African Continental Free Trade Area (AfCFTA) changes the game. With 54 markets and 1.4 billion consumers, it offers SMEs a rare chance to scale beyond borders and participate meaningfully in global value chains. However, opportunity alone is not enough. Africa must deliberately cultivate “export-ready” SMEs, firms with the skills, systems, financing, and support networks necessary to compete globally. Why most African SMEs do not export today Despite comprising the majority of business activity and employment in Africa, most SMEs are confined to local or national markets. Several structural barriers hinder their ability to expand their reach. High compliance costs Meeting international product standards can be costly and technically complicated. For example, exporting yam flour to Europe may require certifications for pesticide levels, allergen labelling, and traceability protocols. Limited market information Many SMEs operate in information vacuums. They lack real-time data about export demand, pricing dynamics, regulatory updates, and changing consumer preferences abroad. Fragmented supply chains Logistics systems in many African countries still function as isolated entities. SMEs encounter challenges in accessing cold storage, dependable trucking networks, or cost-effective shipping solutions. This adversely affects time-sensitive or perishable exports in particular. Credit constraints Without formal collateral, credit histories, or knowledge of export financing tools, SMEs often struggle to secure the capital needed for expansion. Even those that succeed encounter high interest rates and brief repayment timelines. A 2024 survey by the African Trade Policy Centre found that fewer than 20% of African SMEs have ever attempted to export, citing a combination of regulatory burdens, financial gaps, and a lack of guidance as the primary deterrents (AfCFTA Secretariat, 2025). AfCFTA’s breakthrough: Levelled playing fields AfCFTA’s Guided Trade Initiative, launched in 2022 in Ghana, offers a glimpse of what is possible. The agreement significantly reduces friction at borders by simplifying customs procedures, introducing a single certificate of origin, and harmonising product standards. Approximately 40 countries are already shipping under the new framework. Early data indicates that participating firms have reduced export documentation costs by up to 35% (Afreximbank, 2025). For SMEs, this could be transformative. This means that a company in Tamale or Kumasi can comply once and access 54 markets with that same certification, provided it meets product quality and delivery expectations. However, simply “opening the gates” is not enough. Without intentional capacity-building and market linkage efforts, larger firms will continue to dominate cross-border flows while SMEs remain sidelined. What makes an SME export-ready? Export-readiness involves more than just having a good product. It requires establishing a coordinated ecosystem within a business, one that connects strategy with execution and vision with discipline. A framework of interlocking capabilities must be strengthened. Documentation literacy Understanding export paperwork, certificates of origin, customs codes, harmonised system (HS) codes, and trade finance tools like letters of credit or export guarantees is crucial. SMEs must know how to navigate tariff classifications and non-tariff barriers efficiently. Even simple errors in product descriptions or missing signatures can delay clearance by weeks. Quality assurance systems Beyond one-off certifications, SMEs must institutionalise systems that ensure consistent quality. This development involves creating standard operating procedures (SOPs), traceability records, and conducting internal audits. For agribusinesses, it may include Good Agricultural Practices (GAP); for manufacturing, ISO standards or HACCP protocols. Buyers in Europe or North America expect documented evidence, not just verbal assurances. Packaging and branding Export packaging must protect the product, comply with regulations, and appeal to the buyer. It may involve adopting multilayer packaging, tamper-proof seals, and multilingual labelling. Branding is equally critical. How a product looks, feels, and tells a story matters. Whether it is organic shea butter from Tamale or ceramic tiles from Sekondi, the brand narrative must resonate with distant buyers. After-sales service capacity Exporting is not the end of the transaction; it’s the beginning of a relationship. Distributors and retailers desire clear return policies, support with shelf positioning, and occasional feedback loops. Even a single point of contact, like a WhatsApp number or export liaison email, can make the difference between repeat orders and silence. Digital visibility Today’s buyers search online. SMEs must have at least a functional website, optimised search terms, and updated profiles on B2B marketplaces such as Alibaba, TradeKey, or specialised African trade platforms. Social proof (testimonials, photos, partnerships) enhances credibility. In the digital age, visibility is no longer a bonus but a necessity. Production scalability Can the SME fulfil an order of 10,000 units? How quickly can it ramp up if a buyer doubles their order? Many promising SMEs miss opportunities because they can’t demonstrate the operational readiness to scale production, source raw materials in bulk, or meet tight delivery windows. Legal readiness Exporting also introduces risks like currency fluctuations, contractual disagreements, and logistics disputes. SMEs must have access to legal templates, support for contract negotiations, and basic training in intellectual property rights, incoterms, and dispute resolution mechanisms. And then there is mindset. Many SMEs still view export as a risky leap rather than a long-term growth strategy. Shifting this psychology is as critical as any logistical fix. Business owners need to see themselves as players in a continental ecosystem, not just as traders at a local market. They need to dream bigger, but they must also be equipped to execute just as effectively. Practical strategies to grow Africa’s export-ready SME base National Export Readiness Academies Public-private partnerships can provide modular training on trade logistics, digital marketing, compliance documentation, and product quality. This training can be delivered

In the busy streets of Accra, a young executive assistant enters a local waakye spot. Instead of paying immediately, she enters a code and chooses Credit, a Buy-Now-Pay-Later (BNPL) plan. The cost? Around 40 Ghana cedis, divided over four weeks. It’s a small amount for a simple meal. Yet, in that moment, we catch a glimpse of a quiet revolution reshaping urban life in Ghana. BNPL is now woven into everyday life. It’s no longer just for smartphones or cars; it’s financing school uniforms, groceries, and even basic health treatments. This shift is steadily changing the pace of city living and has given rise to non-banking credit and loan institutions. Admittedly, I run a microfinance enterprise myself, although I am not promoting it as much as my other businesses, yet (www.WellMaxCredit.com). So, believe me when I tell you, the moment people hear an interest rate twice the national GRR, it’s already a yes. Globally, the BNPL industry is expected to surpass US $560 billion in 2025 (FinTech Futures, 2025). In Africa, the model’s appeal is clear: low barriers to entry, mobile-first interfaces, and a generation increasingly comfortable with digital finance (Mastercard BNPL in Africa Report, 2024). However, with opportunity comes risk, and the stakes for African cities are uniquely high. Why BNPL is booming in African cities Three forces are driving the BNPL surge across the continent. Smartphone penetration Affordable devices and mobile internet have given millions access to digital marketplaces where BNPL is baked into checkout processes (Mastercard BNPL in Africa Report, 2024). Informal economies A large share of urban workers operate outside formal banking systems. BNPL offers them flexible, low-friction access to goods and services (McKinsey Informal Economy Trends Report, 2024). Cultural aspirations Rising urban populations, fuelled by a young demographic, are eager to access modern lifestyles, and BNPL makes aspirational spending feel attainable. Companies are tailoring BNPL models for local realities, targeting everything from laptops to fertiliser. Yet, beneath this innovation lies an uncomfortable truth: when we have to access our basic essential purchases through financing, it is a sign that the social fabric is under significant stress. The danger of normalising debt for survival Historically, credit served as a lever for investment, like financing a house, an education, or a business. Today, BNPL is increasingly used for essential spending: meals, work shoes, and utility bills. This shift is subtle but profound. It risks creating a new class of “credit-dependent citizens” whose monthly budgets are built on fragmented, deferred obligations. In Accra, informal surveys estimate that up to 30% of BNPL users have at least three concurrent instalment plans (McKinsey Informal Economy Trends Report, 2024). Many rotate repayments to stay afloat, effectively juggling micro-debts to maintain a semblance of normalcy. Without careful regulation and financial education, this could spiral into systemic fragility. I have discussed this with the Micro-Credit Association of Ghana. There is strong interest in exploring nationwide frameworks for responsible BNPL lending and linking it to broader financial inclusion goals. BNPL’s impact on urban resilience Why does this matter beyond individual households? It’s because financially vulnerable citizens weaken the economic resilience of entire cities. This erosion manifests in multiple, interconnected ways that quietly but decisively destabilise the foundations of urban life. Lower household savings When instalments consistently eat into future income, families are left with little or no capacity to absorb financial shocks. This leaves them vulnerable to emergencies and everyday fluctuations: a rise in food prices, a sick child, or a delayed salary. Over time, this erodes intergenerational wealth as parents struggle to save for their children’s education or invest in long-term goals. Weaker consumer confidence In an environment where BNPL obligations already fragment disposable income, consumer spending becomes reactive rather than strategic. People buy only what they need immediately, often in smaller quantities, which reduces bulk purchases and negatively impacts overall business margins. This volatility makes it more challenging for SMEs to forecast demand, manage inventory, or access credit effectively. Higher mental health burdens The emotional toll of juggling repayments, dodging defaults, and living under constant financial uncertainty is severe. Persistent financial anxiety is closely linked to depression, low self-worth, and in some cases, substance dependency (World Health Organization, 2024). As stress compounds, it can affect productivity at work, relationships at home, and even physical health. Reduced civic engagement Citizens trapped in a cycle of economic survival have reduced time and energy for community life, whether it’s volunteering, attending town meetings, or participating in local initiatives. This undermines social cohesion and trust, both of which are essential for stable, resilient urban environments. Urban fragility doesn’t begin with crumbling roads or traffic congestion. It begins with individuals forced to navigate daily life without the essential cushion of financial security. Cities flourish when people can plan, invest, and dream. Unchecked BNPL dependency transforms ambition into anxiety and undermines the fundamental concept of sustainable urban development. Policy interventions: Building healthy credit ecosystems BNPL is not inherently bad. It can be a powerful tool for inclusion if managed wisely. However, like any powerful tool, it requires guardrails, feedback loops, and a deep understanding of how it interacts with vulnerable communities. African regulators, FinTechs, civic leaders, and even educators must collaborate to shape an ecosystem that balances access with protection. Cap effective interest rates Some BNPL models mask high fees as “service charges.” These add up quickly, especially when users carry multiple loans. Transparency must be enforced. Clear legal definitions should distinguish between service fees and disguised interest. Policymakers should mandate disclosure of the total cost of credit, perhaps in local languages, using examples that reflect everyday purchases. Mandate plain-language contracts Contracts must be readable at a secondary school level and structured so that the most critical terms (interest rate, penalties, duration) appear upfront. A consumer should not need a lawyer to understand a loan agreement. Regulators might also explore using iconography and simplified “credit scorecards” so customers can compare offers like they do prepaid bundles. Integrate repayment data into credit bureaus A well-managed BNPL repayment history

In Accra, the price of a kilo of tomatoes is up nearly 40% compared to last year. Inflation may be easing, but at 22.4% in March 2025, everyday costs still bite hard. Friends in London tell a similar story: although the UK’s official inflation rate has fallen to 2.6%, most people don’t feel any richer; their wages haven’t really kept pace, and bills continue to climb. In the US, inflation is slightly lower at 2.4%, but that hasn’t stopped rents, healthcare costs, and the endless drip of monthly subscription fees from squeezing wallets thin. No wonder we mutter the same phrase from Kumasi to Kensington: “Nowhere cool.” That phrase has become a kind of shorthand, a way to sum up the shared, simmering frustration that something is out of balance almost everywhere. It reflects not just economic discomfort but something deeper. There is a global unease with how modern life is structured. The cost of living is only part of the story. Beneath it runs anxiety about precarity, systems under strain, and a growing sense that today’s cities, even in their gleaming modernity, aren’t built for human thriving. Why BNPL Signals a Deeper City Crisis. Something unusual is happening in how we pay for everyday things. In the UK and US, you can now buy a simple burger and split the cost into about four payments. It’s not just for fashion or tech anymore. Basic meals and even concert tickets are increasingly being paid for in instalments. At this year’s Coachella festival, around 60% of general-admission tickets were bought on credit through Buy-Now-Pay-Later (BNPL) services. That whole BNPL sector is expected to cross $560 billion globally this year. BNPL can help people manage tight budgets, yes, but if you need a loan to have dinner, it’s a warning sign. It means more people are living on borrowed comfort, not actual security. In African cities, BNPL is growing fast too. It’s powered by mobile phones, informal jobs, and the pressure to keep up. But here’s the concern: if credit becomes the main way to feel included or “modern,” we’re building cities on shaky ground. True dignity shouldn’t rely on debt for basic needs. We need systems that let people thrive without stretching their wallets to breaking point. Persons of Concern: the club no one queued for. Once used to describe refugees, the term Persons of Concern (POCs) is quietly expanding to include teachers, nurses, and even software engineers. It now includes anyone living a paycheque away from arrears. It now includes everyday hardworking people who find themselves increasingly poorer and poorer, year after year, through no fault of their own. When survival dominates the lives of 60% of a city’s residents, innovation, ambition, and investment all falter. What makes this shift more concerning is how invisible it is. Many POCs wear the mask of normalcy. They show up to work, smile at clients, and meet KPIs, all the while quietly rationing electricity, skipping meals, or delaying essential health checkups. The social contract weakens when middle-income earners become the working poor. The Three-pillar antidote In 2018, I argued that African cities must become: 1. Regionally Productive 2. Worldwide Connected 3. Self-Reliant The framework still holds. However, the stakes are higher now, so it is important that we unpack these pillars again through a 2025 lens. 1. Regional Productivity Productivity doesn’t just mean more output. It means useful output in sectors that matter, at scales that are inclusive, and with systems that reward long-term value. • Ease borders inside the border. Ghana ranks fairly well for starting a business, yet contract enforcement and customs friction drag GDP. World Bank simulations suggest that streamlining these could lift national output by up to 2%. Businesses in Kumasi shouldn’t face more red tape sending goods to Accra than they would exporting to Abidjan. • Skill up, spin up. Intra-African trade has reached $192 billion. There’s robust demand for goods made and branded on the continent. Yet our technical training systems often lag. There is a huge difference between a local skilled artisan and a local export-ready manufacturer. Yet, the gap is actually narrower than we think. We can bridge this gap, but only with the right support systems like maker spaces, certification hubs, and co-investment from diaspora networks. • Localise supply chains. Cities must cultivate internal resilience. If 80% of a hospital’s PPE must come from abroad, then every border shock becomes a health crisis. Regional production hubs, especially for essentials like food, medicine, and construction inputs, are both strategic and economic priorities. 2. Worldwide Connectivity Africa has often been plugged into global systems only as an extraction point. Examples are mining, raw exports, and data harvesting. But AfCFTA changes the game. It creates a platform for cities to negotiate their integration terms. Thirty-seven African states are shipping under AfCFTA’s Guided Trade Initiative. Digitised customs, harmonised standards, and single-origin certification let businesses comply once and then access 54 markets. Cities that plug in early will enjoy network effects down the line. But connectivity also means digital. Broadband penetration in some African capitals remains under 50%. Without reliable, affordable internet, everything from fintech inclusion to remote learning collapses. Urban investment must include fibre optics and public access points as basic infrastructure. Let’s not forget cultural exports: Nollywood films, Ghanaian music, and Francophone fashion. These connect the continent to global youth culture. Policies should help creative industries formalise, scale, and retain ownership. 3. Self-Reliance Africa still produces only around 80% of the food it consumes. But we have tools like AI-driven fertiliser maps, solar-powered cold chains, drought-resilient seeds, and many others. Urban-centred “agro-rings” could shield populations from price shocks and retain value locally. This is where decentralised infrastructure becomes key. Imagine a circular economy that doesn’t just recycle plastic but repurposes organic waste into biofertiliser for peri-urban farms. Or rooftop gardens on housing estates linked to local feeding programmes. This can happen in real life, not just in sci-fi movies. Self-reliance also includes energy. With falling solar prices and battery innovation, cities can aim to power health clinics, schools, and