Boosting AfCFTA integration with eco-friendly business practices

The African Continental Free Trade Area (AfCFTA) presents a $3 trillion market opportunity for African businesses. To harness this potential, the United Nations Development Programme (UNDP), in partnership with the Environmental Protection Agency (EPA) and the Ghana Export Promotion Agency (GEPA), recently concluded a comprehensive training program designed to empower Ghanaian Micro, Small, and Medium-Sized Enterprises (MSMEs) especially women and youth-led, to integrate environmentally sustainable practices into their operations.

Held in three strategic locations across the country; Aburi, Tamale, and Kumasi, the workshops gathered 60 MSMEs from diverse industries and sectors. These sessions provided hands-on training on environmental considerations and social due diligence, enabling MSMEs to understand, measure, and take action to mitigate any negative environmental footprints.

By enhancing local enterprises' capacity for eco-friendly practices, the program supports Ghana's ambition to advance a green and inclusive economy across Africa. As host of the AfCFTA Secretariat, Ghana is committed to leveraging sustainable practices for economic growth and sustainable development.

Dr. Abdul-Razak Saeed, UNDP Ghana's Head of the Environment and Climate team, stated, "Sustainable practices will enable women and youth-led MSMEs to access premium markets, boost competitiveness, and ensure business viability for generations. UNDP Ghana remains committed to supporting MSMEs in 'greening' their operations and integrating into international markets."

During the training, facilitators introduced MSMEs to the broader framework of Environmental and Social Impact Assessment (ESIA) and Environmental Management Plans (ESMP) to manage their environmental footprint. Andriana Nelson, Acting Director of EPA Ghana, noted, "In today's trade landscape, promoting eco-friendly packaging and environmental impact awareness is vital. The EPA will continue collaborating with partners to create an ecosystem that balances profitability with environmental and social responsibility."

The training program was tailored to meet the unique needs of Ghanaian MSMEs. Given that approximately 44% of MSMEs in Ghana are owned by women, the project prioritized inclusivity, ensuring women and young entrepreneurs received targeted support in adopting green production methods.

Participants learned about sustainable packaging options, such as biodegradable materials, to meet AfCFTA's high standards and foster a nature-positive approach. The training explored primary and tertiary packaging levels suitable for international markets, as well as the opportunities in adopting such options, for enhancing MSME products' attractiveness on the world market.

Dr. Martin Akogti, Deputy Director of Research at GEPA, remarked, "Through AfCFTA, Ghanaian MSMEs have unprecedented access to wider African markets, where sustainable practices add significant value. Green practices ensure environmental responsibility, enhance market access, attract partnerships, and bolster long-term growth prospects. At GEPA, we remain committed to promoting Ghanaian exports, facilitating trade, building exporter capacity, and supporting the realization of AfCFTA's objectives."

The workshop drew positive feedback from participants, with many indicating commitment to sustainable growth practices. Obed Awuni, CEO of Kade’s Farm, emphasized, “This training has transformed my perspective on business sustainability. I’m now equipped with insights that will help refine my managerial skills and leverage export opportunities for growth.”

Similarly, Amuzu Celestine Fafali, CEO of Fresh Gate Enterprise shared, "I've learned that respecting customer needs and demands for green products and also fostering a positive work culture is essential for integrating into the AfCFTA. This mindset shift will enable us to compete effectively, expand our business, and leverage the AfCFTA's single market framework to reach new customers, explore innovative markets, and contribute to Africa's economic growth."

Ayivor Pearl Ruth Elorm of Nical Pee Enterprise, another beneficiary, enthused about the green packaging session shared, “This workshop shifted my focus from just production costs to the long-term benefits of eco-friendly practices, enhancing my competitiveness in the AfCFTA while protecting the planet. I'm now committed and empowered to implement these sustainable changes."

The program supported MSMEs in understanding AfCFTA regulations, acquiring the AfCFTA Rules of Origin Certificate, promoting value addition, and developing effective branding for the African market.

As part of UNDP's ongoing efforts, this program aligns with Agenda 2063, aiming to build a sustainable, prosperous Africa driven by its people. It also supports UNDP's commitment to youth and women's economic empowerment through job creation and business resilience in line with the Sustainable Development Goals.

This initiative has equipped MSMEs to enhance business practices, become more resilient, adaptive, and competitive in Africa's evolving market landscape. UNDP Ghana remains dedicated to sustainable development, economic inclusivity, and environmental stewardship.