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The African Export-Import Bank (Afreximbank) has set an ambitious goal to double its financing of intra-African trade, aiming to reach $40 billion on a revolving basis by 2026. In 2021, the bank’s financing for intra-African trade stood at $20 billion.
Mrs. Kanayo Awani, Afreximbank’s Executive Vice President, announced this plan during the Intra-African Trade Fair 2023 (IATF) Nigeria High-Level Business Roadshow held in Lagos.
IATF 2023, scheduled for November 9 to November 15 in Egypt, is organized by Afreximbank in collaboration with the African Union Commission and the Africa Continental Free Trade Area (AfCFTA) Secretariat. It serves as a platform for businesses to access an integrated African market of over 1.3 billion people, with a gross domestic product exceeding $3.5 trillion, created under the AfCFTA.
Awani emphasized that Afreximbank not only leads IATF to support AfCFTA but is also actively promoting African trade by developing various financing and facilitation instruments.
She mentioned that the bank is working closely with the AfCFTA Secretariat to establish the AfCFTA Adjustment Fund, which will offer financing, technical assistance, grants, and compensation funding to AfCFTA member states and private enterprises. This fund aims to aid adaptation and effective participation in the AfCFTA.
Afreximbank has already committed $1 billion to support the funding of this initiative, along with a $10 million grant to facilitate the establishment and operation of the adjustment fund.
Awani highlighted the bank’s efforts to address currency inconvertibility and foreign exchange shortages that hinder intra-African trade. Afreximbank is partnering with the AfCFTA Secretariat and the African Union to implement the Pan-African Payments and Settlements System (PAPSS), which will enable trade transactions in local currencies.
In addition, Afreximbank is leveraging digitalization through the African Trade Gateway, a digital ecosystem designed to facilitate intra-African trade. This ecosystem includes various platforms that help overcome cross-border trade obstacles.
To further facilitate the movement of goods, Afreximbank has introduced the Afreximbank African Collaborative Transit Guarantee Scheme. This scheme, supported by a $1 billion commitment from Afreximbank, will enable cost savings of over $300 million annually by ensuring the smooth transportation of goods across multiple borders through a single technology-enabled transit bond.
Afreximbank is also working on the African Trade Facilitation Programme (AFTRAF), collaborating with African commercial banks to finance intra-African trade. The bank is actively contributing to the development of a viable automotive industry in Africa through a $1 billion global automotive financing facility.
In partnership with the International Trade Centre, Afreximbank is providing training to African companies, including SMEs, on how to export under the AfCFTA. This training program equips businesses with trade and market information, helping them identify export opportunities, comply with AfCFTA export requirements, and access finance, payment, and settlement solutions.
Awani reiterated Afreximbank’s commitment to working with member countries to help them leverage the opportunities presented by the AfCFTA. She also emphasized the bank’s substantial investment in Nigeria’s economy, totaling over $36 billion since its establishment in 1993, covering various sectors such as energy, transport, financial services, healthcare, manufacturing, and trade infrastructure.
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