Regional Integration and Trade Competitiveness: Assessing the AfCFTA’s Impact on Enugu State’s Small and Medium Enterprises

The African Continental Free Trade Area (AfCFTA), which entered its operational phase in 2021, represents the most ambitious regional integration initiative on the African continent, promising to unlock intra-African trade flows and stimulate industrial growth. However, the extent to which these macro-level benefits permeate local economies, particularly those of non-coastal, landlocked states such as Enugu, remains an underexplored area of inquiry. This study examines the influence of AfCFTA provisions on the trade competitiveness of small and medium enterprises (SMEs) in Enugu State, focusing on the agro-processing, textile, and technology sectors. A mixed-methods approach is employed, combining structured questionnaires administered to 120 SME operators with in-depth interviews of trade officials and policy analysts at the Enugu Chamber of Commerce and the Nigerian Export Promotion Council. The study is theoretically grounded in liberal institutionalism and new trade theory, which together emphasize the role of institutional frameworks in shaping market behaviors. Findings reveal that while SME owners express broad optimism about AfCFTA's long-term potential, persistent structural bottlenecks, including inadequate export infrastructure, limited access to trade finance, and poor awareness of AfCFTA protocols, significantly constrain their capacity to benefit from the agreement. The research concludes that institutional capacity building and targeted policy interventions at the state level are essential prerequisites for translating AfCFTA commitments into tangible benefits for Enugu's business community. Keywords: AfCFTA, regional integration, SMEs, Enugu State, trade competitiveness