Story, Louvier Kindo Tombe
Cameroon’s informal small and medium-sized enterprises (SMEs) have been urged to position themselves for new opportunities under the African Continental Free Trade Area (AfCFTA).
Experts made the call during a virtual discussion organized by the Cameroon Economic Policy Institute (CEPI) on The Impact of the AfCFTA on Informal Sector SMEs in Cameroon.
Moderating the session, Nkeh Tamfu Paul, Program Analyst at CEPI, opened the conversation by noting that AfCFTA offers “a chance for Cameroon’s informal economy to expand beyond borders, but only if businesses are ready to compete and collaborate.”
Trade expert and CEPI Executive Director, Henri Kouam, said the AfCFTA’s goal of creating a unified African market could greatly reduce trade barriers and input costs for small businesses.
“SMEs make up 99 percent of Cameroon’s economy,” he explained.
“If we can lower production costs and open up regional markets, these businesses will not only grow but also create more jobs and strengthen our economy.”
He, however, warned that the potential benefits could be lost if structural challenges such as poor access to finance and limited information persist.
“We need to equip SMEs with the right tools, credit, and knowledge. Otherwise, the informal sector will remain trapped at the bottom of the value chain,” Mr. Kouam added.
Development expert Mrs. Chefor Daisy, a CEPI Research Fellow, presented a framework for assessing SME readiness for AfCFTA, emphasizing three key dimensions—capacity, compliance, and connectivity. She urged entrepreneurs to adapt quickly to the changing trade environment.
“SMEs must learn to diversify their income sources, build compliance capacity, and use technology to expand their reach. AfCFTA rewards those who are prepared,” she said.
Rouben Tamba of UB Brima Investment & Logistics Ltd highlighted the power of collaboration, arguing that collective action could help small businesses meet supply and quality demands for regional markets.
“No single SME can meet AfCFTA standards alone,” he noted.
“We must work together to achieve scale and standardization. It’s also time to bring young entrepreneurs into this space—they are the real drivers of innovation.”
The panel agreed that infrastructure and digital transformation remain crucial for SMEs to thrive under AfCFTA.
Mr. Kouam proposed that the government set annual road construction targets to improve trade logistics, and suggested lowering customs duties on digital equipment to promote business digitalization.
“Digitalization is not a luxury anymore—it’s a necessity for competitiveness,” he stressed.
The discussion closed with a shared call for stronger policy reforms targeting the informal sector. Speakers urged policymakers to support capacity building, promote digital partnerships, and offer incentives such as tax holidays for newly registered businesses.
