Posted on September, 13, 2023 at 02:09 am
Kanayo Awani, the executive vice-president of African Export-Import Bank (Afreximbank), says the financial institution plans to increase its intra-African trade financing to $40 billion.
Awani said Afreximbank plans to hit the mark by 2026 as it continues to support the Africa Continental Free Trade Area (AfCFTA) initiative.
She disclosed this on Monday, at the 2023 intra-African trade fair (IATF) business roadshow in Lagos, according to NAN.
As of 2021, Awani said, Afreximbank’s intra-African trade fund stood at $20 billion, noting that with the bank improving its backing of African trade and investments, there would be a 100 percent increase in six years.
She also said part of the financial backing earmarked for intra-African trade is $1 billion to support the funding of the AfCFTA, and a $10 billion grant to facilitate the establishment and operation of the adjustment fund.
“We are also partnering with the AfCFTA Secretariat and AU to ensure a successful implementation of the Pan-African Payments and Settlements System (PAPSS), with the view to facilitating the payment and settlements of trade transactions in local currencies,” the executive vice-presidents said.
“This will address the challenge of currency inconvertibility and foreign exchange shortages that hamper intra-African trade.”
Awani said the lender has invested in a digital platform — the African trade gateway — to use digitalisation to solve challenges of cross-border commerce and enable intra-African trade.
Also, to address the challenge faced during the transportation of goods across multiple borders in Africa, she noted that the bank created the Afreximbank African collaborative transit guarantee scheme, using technology-enabled transit bonds to ensure seamless movement of goods.
According to Awani, the bank also created the African trade facilitation programme (AFTRAF) to support its intra-African trade financing.
“We have also created an African Trade Facilitation Programme (AFTRAF) through which we are forging strong partnerships with African commercial banks to help them finance intra-African trade.
“The Bank is also working with the African Association of Automotive Manufacturers (AAAM), African Union and the AfCFTA Secretariat to develop a viable automotive industry in Africa,” she said.
“In this context, Afreximbank has developed a one-billion-dollar global automotive financing facility for the automotive industry.
“We are also providing support in terms of facilitating the development of regional value chains and the implementation of the Continental Automotive Strategy that was adopted by trade ministers early this year.”
Source: The Cable