The McDan Group of Companies has signed a landmark Memorandum of Understanding (MoU) with the Government of Kenya to promote trade under the African Continental Free Trade Area (AfCFTA), signalling a major step in expanding intra-African commerce and logistics cooperation.
Deal Details
The agreement has the potential to generate an annual turnover of $1 billion. The MoU focuses on using the McDan Group's existing logistics and shipping infrastructure to facilitate smoother cargo movement between Ghana and Kenya — and more broadly across the AfCFTA zone.
Deal Potential
Annual trade turnover potential of $1 billion USD between Ghana and Kenya under the AfCFTA framework, leveraging existing McDan logistics and port infrastructure.
Context: The AfCFTA Vision
The African Continental Free Trade Area (AfCFTA) is a landmark agreement that aims to create a single market for goods and services across 54 African countries. It has the potential to lift millions out of poverty by boosting intra-African trade — but requires major improvements in logistics, transport infrastructure, and trade facilitation.
Dr. McKorley has been an outspoken advocate for using private sector leadership to make AfCFTA a reality, arguing that the private sector must take a leading role in building the infrastructure needed to support continental trade.
McKorley's Vision for the Future
During the signing ceremony, Dr. McKorley also revealed plans for two significant projects that would transform cargo movement across Africa:
A major new shipping line that would significantly reduce cargo costs between African ports, making AfCFTA trade more economically viable for businesses across the continent.
A new shipping company that would provide competitive freight services specifically tailored to the needs of African businesses participating in cross-border trade under AfCFTA.
Significance of the Partnership
This MoU is more than just a business deal. It represents the kind of South-South economic cooperation that AfCFTA was designed to catalyse. By connecting Ghana's world-class port infrastructure with Kenya's dynamic East African market, the partnership creates a bridge across the continent's economic geography.
"Africa's development depends on Africans doing business with each other. This is what AfCFTA is about." — Dr. Daniel McKorley
