Not All Businesses are Ready to Export
Not all businesses are ready to export. Entering a market without preparation can even put a business in danger. This is the main warning issued by Naila Abbas, an expert in market access facilitation at UNIDO, during a panel discussion on digital commerce, access to the African Continental Free Trade Area (AfCFTA) market, and preparation of women-led businesses for export. The discussion was held as part of the 7th COMFWB Regional Trade Fair and Business Conference in Tunis.
A Considerable Opportunity
According to the UNIDO expert, the opening of the African market represents a considerable opportunity. The AfCFTA is "the largest free trade area in the world," with over one billion consumers and a combined GDP of $2.5 trillion. However, many small and medium-sized enterprises (SMEs), particularly those led by women, are still struggling to take advantage of this potential.
Obstacles to Export
The obstacles are not different from those faced by men, but they weigh more heavily on women-led businesses, which are generally smaller and have more limited resources. The first step is to ensure that the business is truly ready to export. This includes compliance with health and quality standards, obtaining required certifications, setting up traceability systems, and having sufficient production capacity to meet international orders.
Finding a Buyer is Not Enough
"Finding a buyer is not enough. You also need to be able to produce the required volumes and have the necessary financing to honor orders," emphasized Naila Abbas, citing the case of an entrepreneur who was unable to fulfill a major contract due to lack of production capacity.
Lack of Information
The expert also stressed the lack of information that still affects African businesses. Consultations with over 120 associations of women entrepreneurs have shown that it is sometimes easier to trade with Europe or China than with a neighboring African country due to a lack of reliable information on continental markets. To address this, she recommends using digital tools, market intelligence platforms from the International Trade Centre (ITC), and artificial intelligence to identify promising markets, understand local regulations, and prepare an export strategy.
Beyond Information, Training is Key
Beyond information, training remains a major challenge. Women entrepreneurs need to master export pricing mechanisms, Incoterms, logistical costs, insurance, and customs procedures before entering a foreign market. However, access to financing is progressing, according to Naila Abbas. She indicated that several international donors are now directly funding SMEs through project calls offering grants of between €10,000 and €200,000. This funding enables investments in equipment, improvement of product quality, or financing of commercial prospecting. Thanks to this support, about a dozen businesses accompanied by UNIDO are now ready to export to Côte d'Ivoire, particularly in the cosmetics, essential oils, and spices sectors.
Sharing Experiences
Jihene Bouzguine, CEO of JOWA and a woman entrepreneur, shared her experience by identifying four main obstacles to export: financing, legal aspects, human resources, and access to information. "What makes the difference between two entrepreneurs is the ability to find information," she estimated. She recalled that many international programs fund prospecting trips, training, or internationalization efforts, but many businesses are still unaware of their existence.
Securing International Transactions
The entrepreneur also emphasized the need to secure international transactions by mastering regulations specific to each country, formalizing contracts, and verifying the reliability of business partners with the support of specialized organizations such as export promotion agencies or diplomatic representations.
Digitalization, a Key Lever
For Fanja Razakaboana, COMFWB Chapter Madagascar, digitalization is now an essential lever for accessing African markets, even if the digital divide remains a reality in several countries. She pleaded for enhanced support for businesses in their digital transformation and regulatory compliance, citing the example of Madagascar, which recently launched a digital portal allowing businesses to access information on import and export procedures, taxes, and trade regulations.
Regional Networks, a Major Asset
Finally, the Malagasy representative emphasized that regional networks like COMFWB are a major asset for African women entrepreneurs. "Alone, a woman entrepreneur cannot overcome all barriers. By pooling our efforts within regional networks, we can access markets more quickly and share the information we all need," she concluded.
