USAID Launches $508,000 Regional Business Grants Initiative

Our Correspondent | Africa Guardian

The United States Agency for International Development (USAID), in partnership with TradeMark Africa (TMA) and the East African Business Council (EABC), has introduced a $508,000 grant fund aimed at enhancing capital and credit access for over 220 small enterprises in East Africa.

David Rogers, USAID’s Deputy Director for the East African region, highlighted that the initiative emphasizes the importance of increased regional collaboration. The program focuses on sustained engagement between policymakers and the private sector on matters related to the African Continental Free Trade Area (AfCFTA).

TMA CEO David Beer stressed the crucial role of the private sector in ensuring a unified message from businesses to policymakers at national, regional, and continental levels. Meanwhile, Adrian Njau, Acting Executive Director of the EABC, noted that the partnership will help women, youth, small and medium-sized enterprises (SMEs), and other key players in the value chain access trade policy tools and participate in intra-African trade.

“This initiative will involve key stakeholders, including the East African Women in Business Platform (EAWiBP), the East African Sub-Regional Support Initiative for Advancement of Women (EASSI), and YouLead,” Njau said.

The program targets SMEs, as well as 3,000 farmers, processors, and private business owners within the AfCFTA zone, which comprises 55 member states of the African Union. The three-year partnership, funded by the USAID Economic Recovery and Reform Activity (USAID-ERRA), was officially launched in Nairobi and will focus on reducing trade barriers.

The initiative aims to support high-potential agricultural exports such as tea, coffee, rice, vegetables, staple foods, cotton, textiles, and garments. The EABC also plans to address 12 high-impact non-tariff barriers, facilitate trade deals through business-to-business connections, and raise awareness about market opportunities under the AfCFTA.

A study by TMA and the East African Community (EAC) secretariat estimates that the total trade potential for the EAC within the AfCFTA zone could reach $1.9 billion. Kenya is projected to have the largest share, with a potential of $705.5 million, followed by Tanzania at $594 million, the Democratic Republic of the Congo (DRC) at $342 million, Uganda at $178.2 million, Rwanda at $36.1 million, and Burundi at $1.3 million.

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