Pan-African multilateral trade finance institution, African Export-Import Bank (Afreximbank), has announced its intention to support the African Continental Free Trade Agreement (AfCFTA) with some $40 billion.
This was disclosed by President of Afreximbank, Dr Benedict Okey Oramah, at a virtual event marking the commencement of the AfCFTA.
The $40 billion dollar support for the trade pact, Dr Oramah noted will be used as investments into policies and programmes aimed at promoting intra-trading among African countries under the AfCFTA.
The amount, he further stated, would be made available over a period of 5 years.
“The pan-African payment and settlement systems, will commence piloting among six countries in the next few days, and the trade regulations platform is undergoing testing. In support of the AfCFTA, Afreximbank will make available $40 billion in its African trade and investment financing during the next 5 years, twice the amount it disbursed in 2014 for the same purpose,” Dr Oramah said.
“Afreximbank will intensify the ongoing work to ensure that every African country has at least one bank with the credit limit to support intra-African trade. With 400 banks already in place and onboarded onto the trade agreement, Afreximbank expects to achieve its target of 500 banks with a combined credit limit of $8 billion in the next 18 months,” he added.
Meanwhile, Ghana’s Trade and Industry Minister, Alan Kyeremanten, is expected to issue a directive scrapping tariffs and duties on shipments of some goods to other African countries under the AfCFTA.
This will result in Ghanaian exporters and importers paying no tariffs on some listed goods on the back of the trade agreement that kickstarted January 1, 2021.
