This report examines the participation of small and medium-sized enterprises (SMEs) in the Central African Republic (CAR) in regional production and supply networks, in the context of the implementation of the African Continental Free Trade Area (AfCFTA). Despite abundant natural resources and comparative advantages in several agricultural and mining products, the CAR's economic structure remains undiversified, dominated by raw materials, with low integration into regional value chains.
The analysis highlights the main obstacles to the integration of SMEs, including the small size of the domestic market, inadequate infrastructure, lack of local processing, geographical concentration of trade, and the predominance of trade with non-African countries. At the same time, the study identifies strategic opportunities within the AfCFTA, particularly through regional value chains with high potential in the cotton, timber, agri-food and infant nutrition sectors.
Based on an approach founded on revealed intra-African comparative advantage, the report maps regional market niches for the CAR and recommends priority actions to strengthen productive capacities, facilitate access to finance, improve infrastructure, foster regional trade integration, and promote local entrepreneurship.
The enhanced integration of Central African SMEs into regional value chains is identified as a strategic pathway to drive inclusive economic growth, generate employment, strengthen economic resilience, and promote sustainable structural transformation.
The integration of SMEs in the Central African Republic into regional value chains is not only an economic imperative, but also a strategic lever for inclusive, sustainable and resilient growth. This requires coordinated action between the state, the private sector, technical and financial partners, and regional institutions. The success of this approach will help to sustainably embed the Central African Republic in the economic transformation of the African continent.
To strengthen the participation of CAR SMEs in regional value chains, this report proposes recommendations aimed at strengthening the productive and technical capacities of SMEs and facilitating their integration into niche markets within the AfCFTA.
This report was prepared as part of UNCTAD's project entitled ‘Enhancing the capacity of African vulnerable countries in adopting policy incentives and innovative instruments for SMEs' participation in regional value chains’, funded by the Sub-Fund for the 2030 Agenda for Sustainable Development of the United Nations Fund for Peace and Development.