Online Platforms Open Up Export Markets

Digitisation is enabling small and medium-sized enterprises SMEs in southern Africa to overcome historic export barriers to tap into regional and global value chains, according to a study by the United Nations Economic Commission for Africa.SMEs are using online platforms and e-commerce marketplaces to reach customers around the globe.An example is Feeling Good in Cabo Delgado, Mozambique, which is leveraging its organic certification to access premium markets.Feeling Good is a vertically integrated agro-industry project involved in organically certified cultivation, processing, packaging and sales of whole cane sugar, cashew kernels, moringa powder and medicinal alcohol, according to the company.Entrepreneurs are taking advantage of the fragmentation of production to access global markets as providers of components or services. The report cites Botswana-based Delta Automotive Technologies as an example. The company supplies wiring harnesses to Volkswagen, Renault and Nissan.In 2023 Botswana exported wiring sets to South Africa, Germany, North Macedonia, Romania and Zambia, according to World Bank statistics. SMEs are also using digital platforms to share information, improve efficiency, and reduce costs. Zambian company Good Nature Agro has helped farmers reduce costs and improve quality and yields through a digital platform which connects farmers, seed producers, agro-processing operations, and research and development units.Cross-border platforms, such as the Global Trade Helpdesk GTH and the African Trade Observatory, are opening markets by providing SMEs with information on market requirements, trade regulations, and business opportunities.The GTH is a multi-agency initiative jointly led by the International Trade Centre ITC, United Nations Conference on Trade and Development, and the World Trade Organization. The project aims to simplify market research for companies by integrating trade and business information into a single online portal, according to the ITC.On its website, the African Trade Observatory says it connects small and medium-sized enterprises to global and regional value chains.Digitisation of import and export documentation has removed another barrier to export markets.Electronic certificates of origin have significantly reduced the time and cost associated with proving origin, making it easier for SMEs to comply with rules of origin and qualify for trade preferences, its research points out.Electronic certificates of origin, single window platforms, and blockchain technology are simplifying complex trade procedures, reducing administrative costs and making it easier for SMEs to comply with regulations. These innovations are particularly beneficial for SMEs in Africa, where navigating bureaucratic hurdles can be time-consuming and expensive, it adds. ER