APD26: Connectivity, not money, is Africa’s trade challenge

Dr. Daniel McKorley, Executive Chairman of McDan Group, has underscored that the biggest obstacle to Africa’s intra-continental trade is connectivity, not capital, urging private sector-led solutions to boost the continent’s economic integration.

Speaking during Day 2 of the 2026 Africa Prosperity Dialogues (APD) at the Accra International Conference Centre (AICC) on Thursday, 5th February 2026, Dr. McKorley highlighted the challenges that African SMEs face, despite the promises of the African Continental Free Trade Area (AfCFTA).

“Trade does not move on speeches. It moves on ships, trucks, ports, rails, and logistic networks. If you don’t have the sea, you don’t have the air, you don’t have the logistics, you don’t have the business, you can have all the money, but trade is not yours. You only talk about trade,” Dr. McKorley said.

The business magnate recounted his own entrepreneurial journey, from buying maize and coffee in 1996 to scaling the McDan Group across Africa. Through this experience, he observed that women dominate Africa’s informal trade sector, inspiring his efforts to empower female entrepreneurs. “We have supported over 5,000 women entrepreneurs to scale up their businesses through our interest-free loan initiatives and capacity-building programs,” he revealed.

Dr. McKorley further pointed out that intra-African trade remains low at 15–18% of total trade, compared to nearly 60% in Europe and Asia. “It is like having a massive family but buying from strangers instead of trading with each other,” he said. High transport costs, fragmented regulations, delays at borders, and limited logistics infrastructure continue to suffocate SMEs.

To tackle these challenges, McDan Group has invested in solutions such as the Black Star Line and the Conduct Trading Company, which aim to provide vessels, cargo planes, and streamlined logistics networks to connect African businesses. “We must make trade practical for SMEs. This is a system problem, not a market problem. The private sector must be part of the solution,” he emphasized.

Dr. McKorley called for harmonized digital systems, one-stop border posts, and mutual recognition of product standards to reduce inefficiencies. “Harmonization is not a technical detail; it is the difference between a small business scaling or shutting down,” he said.

He further urged African entrepreneurs to think globally and act locally, stressing that SMEs are the engine of Africa’s economic growth. “If we get this right, a small agro-processor in Tamale, a fashion entrepreneur in Nairobi, or a tech startup in Kigali will not think of themselves as a local business. They will think and operate as an African business. Move from potential to production, from conversation to commerce,” Dr. McKorley said.

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