Key initiatives and partnerships from Afreximbank aim to enhance trade within Africa, with a focus on supporting the AfCFTA and broader economic integration.
Afreximbank aims to double its intra-African trade financing to $40 billion by 2026, with strategic initiatives supporting the AfCFTA and economic growth.
Afreximbank has set an ambitious goal to expand its intra-African trade financing from $20 billion in 2021 to $40 billion by 2026. The move underscores the bank’s commitment to driving economic integration and fostering sustainable development across the continent.
Strategic Support for AfCFTA
Central to the African Export-Import Bank (Afreximbank) strategy is its unwavering support for the African Continental Free Trade Area (AfCFTA). Mr. Haytham ElMaayergi, Executive Vice President of Afreximbank, emphasized the bank’s dedication to the AfCFTA during a recent event. He highlighted that Afreximbank has already committed $1 billion to the AfCFTA Adjustment Fund, which is designed to help countries adjust to the new trading environment. Additionally, the bank has provided a $10 million grant to kickstart the fund, demonstrating its proactive role in ensuring the success of the AfCFTA.
Key Initiatives to Enhance Trade Integration
To facilitate the successful implementation of the AfCFTA, Afreximbank is also collaborating with the AfCFTA Secretariat and the African Union Commission (AUC) on several key initiatives. Among these are the Pan-African Payments and Settlements System (PAPSS) and the African Trade Gateway. PAPSS is particularly noteworthy as it aims to simplify cross-border payments, reduce transaction costs, and enhance the overall efficiency of intra-African trade. These initiatives are expected to remove barriers and accelerate the integration of African economies, which is critical for the continent’s growth.
Nigeria’s Strategic Importance
Nigeria, a founding member of Afreximbank and one of its largest shareholders, continues to play a pivotal role in these developments. Mr. ElMaayergi acknowledged the country’s significant contributions, noting that Afreximbank has approved over $40 billion for Nigerian public and private sector entities since its inception. The bank is currently involved in major projects in Nigeria, including the African Medical Centre of Excellence and the Afreximbank African Trade Centre, which underscore the country’s importance in the bank’s broader strategic agenda.
A Vision for a Unified African Market
Afreximbank’s efforts to expand intra-African trade financing are crucial for the realization of a more unified and prosperous African market. By doubling its financial support and spearheading initiatives like PAPSS and the AfCFTA Adjustment Fund, Afreximbank is positioning itself as a key driver of Africa’s economic integration and growth. These efforts, particularly in collaboration with key partners like Nigeria, are expected to yield significant benefits for the continent in the coming years.
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