INF/MSME/P/1  
 
15 February 2022  
(22-1426) Page: 1/4 
  Original: English  
 
 
INFORMAL WORKING GROUP ON MSMES  
AFRICA WOMEN IN TRADE  
The following communication, dated 15 February  2022, is being circulated at the request of the 
Coordinator of the Informal Working Group on MSMEs . 
 
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The information reproduced in Annex was provided  by Africa Women in Trade. This document is 
circulated for information only.  
 
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  ANNEX  
 
AFRICA WOMEN IN TRADE  
 
 
CHALLENGES WOMEN AND YOUTHS ARE FACING AS MSMES  
 
 
1. Expensive licenses e.g., Fairtrade. IOs for licenses for MSMEs to access Global 
Markets  
Private licenses like Fairtrade are important for MSME trade competitiveness but are also 
expensive. It is hard for small businesses to apply, register and pay for these certifications 
which more and more international consumers depend on. AWT recommends that International 
Organizations look for ways to make these kinds of licenses more affordable and accessible for 
MSMEs to access the global market.  
 
2. Need for Africa IP fo r MSMES  
IP is a powerful tool for MSMEs in Africa to raise their value, while at the same time protecting 
their products. There needs to be a robust awareness strategy on the continent about their IP 
rights, beginning with changing the perception that IP i s too complex.  
Effective management of IP on the continent by each country is also necessary to enable the 
smooth transfer of innovation to MSMES.  
Training and partnership amongst MSMES as well as partnerships with governments is essential 
in the delivery of IP related services to MSMES. One model is the European Commission's Africa 
IP SME Helpdesk https://www.youtube.com/watch?v=rAudHI -JK3o. 
AWT would recommend there should be an international Afr ican model to make trading safely 
in other countries in Africa easier.  
AWT believes there should be training on the fundamentals and basics of IP, including the 
various types of IP, their characteristics, importance, advantages and disadvantages and 
relative costs of the different IP systems and timelines to obtain them. Moreover, the different 
types of IP systems across Africa, the general challenges for IP across Africa, as well as what 
African inventors face must be shared, which is what the AfCFTA IP pr otocol on IP Rights seeks 
to achieve.  
IP should be narrowed to patents, the different patent types, their characteristics, requirements, 
and what could and could not be patented, the processes involved, how to protect a business 
with strong patents and som e key takeaways and applications.  
The expectation is that our entrepreneurs understand the importance and benefits of IP and 
why it is necessary for Africa and Africans to pursue these advantages.  
 
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  3. Credibility to access affordable funding  
The banking sector offers very high interest rates that hinder MSMES' ability to pay back loans 
even if they qualify to begin with, which most MSMEs do not since they are in the informal 
sector. AWT recommends that other methods should be used to help MSMEs to  qualify for funds 
e.g., microfinance and the Air Cash Finance Model.  
 
4. Lack of access to markets locally, regionally, or globally and healthy logistics  
Trading barriers e.g., licenses, taxes and tough protocols and policies make it hard to trade as 
MSMES, even with neighboring countries. AfCFTA is working hard to facilitate intra -Africa Trade 
and we are hoping this will also encourage MSMEs to trade . 
 
5. Low business returns causing no growth or expansion  
The challenges above cause MSME profits to be very low and in most cases business grow very 
slowly as they aim to trade in other countries . 
 
6. Competition between MSMEs with big companies  
Companies funded by NGOs can cause competition, killing the private sector i.e., the MSMEs 
who are already struggling to exis t. Once the funding is exhausted the NGO business dies as 
well because it was not planned sustainably. The private sector then takes over the market 
again until a similar situation arises (new companies funded by NGOs) and the circle continues. 
AWT believe s investing in private MSMEs is the only way to grow and be sustainable, hence be 
able to grow and trade . 
 
7. Business owners Lack business management education  
According to the culture in Africa, businesses are not run by the most educated people. These 
MSME s may lack business skills to manage their business to the level of trading. AWT believes 
MSMEs need well -organized capacity building to be able to reach grassroot businesses where 
they are, in their own language and in their own community . 
 
8. The need for aggregators to support MSMEs  
Due to the high integrity needed for trading there is a need to encourage aggregators to 
facilitate trading matters. These will ease the burden for MSMEs and they can concentrate on 
production of their products. AWT suggests there should be more industrial parks that have 
end-to-end value -added products.  
 
9. Gender inequality gaps between women and men in decision -making positions, 
especially in political parties, where women have been systematically left out  
There are v ery few women in trade, even though the biggest percentage of business owners 
are women. At the government level we need to have women given the opportunity to be there 
when business and trade decisions are being made.  
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  10. Lack of networking platforms like Af rica Women in Trade  
There is a need to encourage more platforms for networking and markets in digital trade. The 
benefit of platforms like AWT has been tremendous, it has had substantial growth since it was 
formed 1year ago and has now brought over 4,000 w omen to be ready to trade. Support of 
these kinds of platforms will enable MSMEs to learn from each other and be able to receive real -
time information and education.  
 
 
 
Africa Women in Trade  
Kleinfeldele 65  
Müllheim, Germany  
Email: Africawomenintrade@gmail.com  
 
 
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