Kuraway CEO David Chima says manual systems weaken AfCFTA by raising costs, slowing procurement and limiting Nigerian SMEs’ cross-border trade

The Chief Executive Officer of Kuraway, David Chima, warned that continued reliance on manual procurement systems and inefficient logistics is weakening Africa’s trade integration under the African Continental Free Trade Area.

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David Chima made the comments in an interview on the structural barriers limiting Nigerian businesses’ participation in intra-African trade.

David Chima said Nigeria lacked a unified, trusted database of vetted vendors, forcing businesses to repeatedly search for and verify suppliers from scratch.

David Chima said this process slowed procurement, increased transaction costs, exposed firms to fraud risks and created pricing instability.

David Chima said procurement remained largely manual, leaving room for errors, duplication and inconsistent vendor evaluation.

David Chima said Nigerian small and medium-sized enterprises continued to face regulatory fragmentation across African countries, including differing standards, manual documentation requirements and unpredictable border clearance timelines.

David Chima said poor transport networks, informal border charges and weak logistics infrastructure further increased the cost of cross-border trade.

David Chima said the lack of reliable supplier data and verification systems undermined business trust and exposed companies to counterfeit products and unreliable delivery.

David Chima said foreign exchange volatility intensified the impact of procurement delays because sellers were exposed to exchange-rate shifts while goods remained in transit or awaiting clearance.

David Chima said logistics challenges such as port congestion, insecurity and poor road networks could derail entire supply chains, causing losses for manufacturers, traders and buyers.

David Chima said cultural distrust of digital systems, limited internet access, unreliable power supply and low digital literacy continued to slow adoption of technology-based procurement, especially among traditional micro, small and medium-sized enterprises.

David Chima said compulsory insurance for goods in transit should be prioritised to reduce merchant risk, citing the Nigerian Insurance Industry Reform Act 2025 as a foundation that now required firm enforcement.

David Chima said delays in insurance claims settlement discouraged uptake and left businesses exposed to losses from theft, damage and disruption.

David Chima said digital procurement offered a powerful opportunity to reduce costs, improve efficiency and strengthen Nigeria’s competitiveness.

David Chima said faster sourcing would allow firms to focus on innovation, expansion and job creation rather than administrative delays.

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David Chima said wider digital adoption would also enable Nigerian businesses to integrate into regional supply chains and participate more meaningfully in Africa’s growing trade ecosystem.