Professor Benedict Oramah, the President and Chairman of the Board of Directors of the African Export-Import Bank (Afreximbank), has called on key stakeholders in Africa to collaborate in harnessing the potential of the African Continental Free Trade Agreement (AfCFTA) to drive intra-African trade and industrialisation.
Addressing the audience at the Presidential Summit during the third Intra-African Trade Fair in Cairo, he emphasized the pivotal role of AfCFTA in realizing the continent’s industrialization aspirations.
Collaborating with the African Union Commission and the AfCFTA Secretariat, Afreximbank has been instrumental in facilitating vital AfCFTA-enabling mechanisms, stated Professor Oramah.
At the event, graced by the esteemed President of Egypt, Abdel Fattah al Sisi, Professor Oramah highlighted the establishment and operationalization of the Pan-African Payment and Settlement System (PAPSS). He elaborated that the system, currently demonstrated at the fair, has garnered participation from eleven African central banks and 81 commercial banks, streamlining intra-African payments in local currencies and supported by Afreximbank’s $3 billion settlement and clearing fund.
Additionally, the commencement of operations of the African Collaborative Transit Guarantee Scheme in the COMESA Region, with Afreximbank as the regional guarantor, has been lauded for simplifying the movement of goods across Africa’s myriad borders. This, coupled with the PAPSS, is expected to mitigate the foreign currency cost of transit bonds, detailed Professor Oramah.
Furthermore, the establishment of the AfCFTA Adjustment Fund, operational by early next year with the support of Afreximbank, is set to receive $1 billion for its facilitation.
During his address, Professor Oramah unveiled the Afreximbank Intra-African Engineer, Procure, and Construct Contract Promotion Programme, an innovative initiative aimed at empowering African companies to competitively secure and execute infrastructural contracts within the continent. He stressed that this initiative would enable African contractors to partake in the annual $60 billion infrastructure investments in Africa, countering the prevailing trend where non-African entities clinch the majority of these projects.
Mr. Wamkele Mene, Secretary General of the African Continental Free Trade Area (AfCFTA) Secretariat, commended Egypt’s unwavering support for the implementation of AfCFTA and hosting the IATF for the second time. He lauded Egypt’s initiatives, including the formation of the AfCFTA Trading Company, designed to fortify links among the member countries.
Moreover, Mr. Mene disclosed the presence of a current investment protocol and the concerted efforts to establish an investment protocol that would bolster the Pan-African Trade Investment Agency, thus easing investments across the continent.
Echoing these sentiments, Mr. Albert Muchanga, African Union Commissioner for Economic Development, Trade, Tourism, Industry, and Minerals, underscored the significance of intra-African trade and the AfCFTA as the catalysts for the prosperity of African nations.
Adding a perspective from Nigeria, Chief Olusegun Obasanjo, Chairman of the IATF2023 Advisory Council and former President of Nigeria, commended the IATF’s commendable progress and milestones, including the introduction of the African Buyers Programme, which actively promotes trade within African nations.
This visionary appeal by Prof. Oramah underlines the collective imperative for leveraging AfCFTA and sets the tone for a collaborative approach towards realizing the full potential of this historic trade agreement.
