Kenyan businesses have to embrace digital solutions to maximise opportunities under the Africa Continental Free Trade Area (AfCFTA), the chamber of commerce has said.
Kenya National Chamber of Commerce and Industry (KNCCI) has listed digital solutions in fintech, e-logistics, manufacturing agricultural technology and e-health as some of the key elements that will drive market access.
The chamber said the shift should be embraced by both large corporations and small businesses if they are to benefit from the new market.
AfCFTA creates a large single market with a population of over 1.2 billion people and a combined GDP of about US$ 2.5 trillion (Sh303.2 trillion).
Fintech solutions are expected to drive payments in the intra-africa trade,and Nairobi already has an advantage as it remains a leading tech-hub in the continent, with payment platforms such as Mpesa and the growing digital banking space.
“Not everybody will be able to travel to go do business out there. Going digital is the solution and Kenya is very well positioned to take the lead in Africa,” KNCCI chairman (Nairobi) Julius Opio said.
Kenya is among six countries selected to participate in the pilot phase of the AfCFTA initiative on Guided Trade.
The others are Cameron, Egypt, Ghana,Rwanda and Tanzania.
Associated Battery Manufacturing EA Ltd was the first Kenyan company to start trading under AfCFTA last month, with exports of locally made exide batteries to Ghana.
“There is a lot of opportunities out there but we must know how to tap them,”Opio said.
The country has identified several products for initial trade under AfCFTA, among them tea, exide batteries,confectionery, leather bags, incinerators, beaded products, vehicle filters,textiles, sisal fibre, avocados and fresh produce.
Opio spoke in Nairobi at a summit by global digital solutions provider –Reliance Datatech, in collaboration with Microsoft, dubbed “Sustaining business continuity with digital resilience”.
According to Reliance Datatech, companies can capitilise on digital solutions for remote collaboration and productivity.
“The beauty of digital solutions is that they have no boundaries. They help HR resources, fleet management, manufacturing industries, energy sector among others,” Reliance Datatech success outcome executive Atieno Onyango said.
Kenya’s thriving tech scene has seen growth in all sectors such as agri-business, healthcare, education, logistics and finance.
During the Covid-19 pandemic, businesses had to act fast to the changing landscape where brick-and-mortar stores went online, while in-office workforce worked remotely to keep their operations going.
Small and medium-sized enterprises (SMEs) have been pitted as among the biggest beneficiaries in the intra-Africa if they go digital.
Kenya has more than 7.9 million SMEs with the sector projected to contribute 50 percent of GDP growth in the next three years.
