Assessing the Implication of African Continental Free Trade Area (AfCFTA) for Ghanaian Women and Youth Entrepreneurs

Abstract

The African Continental Free Trade Area (AfCFTA) offers a significant opportunity for Ghanaian women and youth entrepreneurs by broadening market access, improving economic involvement, and promoting regional value chains. Women and youth constitute a substantial segment of Ghana's entrepreneurial ecosystem; yet, institutional impediments—such as elevated tariffs, non-tariff barriers, insufficient access to trade finance, and restricted regulatory compliance—persistently hinder their comprehensive involvement in cross-border commerce. This paper examines how the AfCFTA can act as a catalyst for tackling these difficulties, providing possible benefits in export expansion, job creation, and poverty alleviation.

The results suggest that AfCFTA may elevate Ghana's exports by 21% by 2035, while intra-African trade is anticipated to expand by 94%. Women-led enterprises are projected to have a 10.5% gain in salaries, surpassing the 9.9% growth anticipated for men. Women are projected to benefit from approximately 57,000 new jobs, and wage gains for both unskilled labor and women are expected to be driven largely by expanded opportunities in agriculture. Additionally, AfCFTA is projected to reduce iceberg trade costs and customs processing times in Ghana by 4.3%, enhancing trade efficiency and competitiveness. The Protocol on Women and Youth in Trade promotes gender-sensitive trade policies, facilitating enhanced inclusion in value chains and the formalization of informal trade. The efficacy of these initiatives relies on intentional policy measures, such as enhanced market information, trade facilitation, and financial inclusion strategies specifically designed for women and youth.

This study contends that although AfCFTA known to have large positive effects on trade creation between member countries, Ghana must provide women and youth Micro, Small and Medium Enterprises (MSMEs) with effective ways for easier utilization of the agreement by confronting challenges like insufficient gender-disaggregated trade data, Non-Tariff Barriers, feeble trade associations, and deficient trade infrastructure. Recommendations encompass bolstering the support mechanisms of the National AfCFTA Coordination Office, reducing administrative costs, streamlining customs procedures, and improving financing access for firms run by women and youth. Through the implementation of targeted policies and capacity-building activities, Ghana can optimize the AfCFTA's potential to foster inclusive economic growth and empower women and youth entrepreneurs in regional commerce.