African Continental Free Trade Agreement (AfCFTA) on solving the supply chain management challenges and leveraging opportunities : a case study of Kenya

Abstract

This study conducts a comprehensive assessment of the implications of the African Continental Free Trade Area (AfCFTA) for supply chain management in Kenya, with a particular emphasis on the associated challenges and opportunities. The AfCFTA, a landmark agreement aimed at creating a single continental market for goods and services, has significant potential to reshape regional trade dynamics and supply chain strategies across Africa. By adopting a mixed-methods approach, this study provides a multifaceted exploration of how the AfCFTA influences supply chain management in Kenya. The research begins by evaluating stakeholder awareness and understanding of the AfCFTA's provisions and objectives. This involves gathering insights from a diverse range of participants, including policymakers, business leaders, trade associations, and logistics providers. Through surveys, interviews, and focus groups, the study assesses the level of knowledge among these stakeholders regarding the agreement's impact on trade barriers, tariffs, and regulatory frameworks.

The results indicate a varied awareness of the AfCFTA among stakeholders, with differing views on its effectiveness in reducing trade barriers and harmonizing customs procedures. Businesses are progressively adopting strategies like diversifying supply chains, integrating digital technologies, and refining logistics operations to exploit the new trade environment. Despite these advancements, several challenges such as inadequate infrastructure, bureaucratic delays, and persistent non-tariff barriers continue to impede optimal benefits from the AfCFTA.