• Login
NORVANREPORTS.COM |  Business News, Insurance, Taxation, Oil & Gas, Maritime News, Ghana, Africa, World
  • Home
  • News
    • General
    • Political
  • Economy
  • Business
    • Agribusiness
    • Aviation
    • Banking & Finance
    • Energy
    • Insurance
    • Manufacturing
    • Markets
    • Maritime
    • Real Estate
    • Tourism
    • Transport
  • Technology
    • Telecom
    • Cyber-security
    • Cryptocurrency
    • Tech-guide
    • Social Media
  • Features
    • Interviews
    • Opinions
  • Reports
    • Banking/Finance
    • Insurance
    • Budgets
    • GDP
    • Inflation
    • Central Bank
    • Sec/Gse
  • Lifestyle
    • Sports
    • Entertainment
    • Travel
    • Environment
    • Weather
  • NRTV
    • Audio
    • Video
No Result
View All Result
No Result
View All Result
NORVANREPORTS.COM |  Business News, Insurance, Taxation, Oil & Gas, Maritime News, Ghana, Africa, World
No Result
View All Result
Home Business

Afreximbank wants Egypt to adopt transit guarantee scheme

4 years ago
in Business, highlights, Home, home-news, latest News, Trade
2 min read
0 0
0
90
VIEWS
Share on FacebookShare on TwitterShare on Linkedin

African Import-Export Bank aims to get Egypt on board its new transit guarantee scheme designed to reduce trade costs, says Kanayo Awani, the bank’s managing director for intra-African trade.

Afreximbank has launched a $1bn continent-wide transit guarantee scheme designed to promote African trade, beginning with a pilot $200m agreement covering the Common Market for Eastern and Southern Africa (COMESA), which was signed on 10 March.

The aims are to improve tax collection for African states and free up working capital that would have been tied up as collateral for transit bonds. The scheme will ensure that when goods do not complete their transit, the duties and taxes that would have been required are still paid. Afreximbank will provide transit bonds covering the borders that goods are required to cross.

  • The bank will not displace existing operators, but will work with them to increase their capacity to issue local bonds.
  • Afreximbank aims to issue the first transit bonds in the third quarter of this year.
  • COMESA estimates that an effective transit guarantee scheme means the continent will save more than $300m per year.
  • Egypt, which is working with nine other countries with the aim of to completing a highway from Cairo to Cape Town by 2024, has “shown a lot of interest,” Awani says. “We are hopeful that Egypt will join soon.”

The bank says that transportation costs in Africa are on average 63% higher than in developed countries. The average cost of freight as a share of the total value of imports is around 11.4% for Africa, compared with 6.8% for developed countries, it says.

Yet most of Africa’s regional economic communities are not fully implementing regional transit guarantee schemes. Traders often need to post national bonds at every border, raising costs and creating delays.

Afreximbank was set up by African governments in 1993 to promote African trade. The new scheme, says Awani, will “remove bottlenecks” in the implementation of the African Continental Free Trade Area (AfCFTA), which began at the start of this year.

Everything to gain

The initial COMESA countries to have adopted the scheme are Burundi, Rwanda, Uganda, Tanzania and Kenya, and the aim is to increase uptake in the zone.

RelatedPosts

Multichoice Rebuffs Minister’s Claim On DSTV Price Cuts, Cites Market Conditions

MTN Nigeria Now the Most Capitalized Stock in Nigeria

Nigerian Stock Market Creates Largest Pool of Billion-Dollar Stocks in 2025

  • Awani aims to expand the scheme to the Economic Community of West African States  by the end of this year or the start of 2022, though an overhaul of legal frameworks is needed first, she says.

Egypt has much to gain from the initiative. According to Hoda Youssef and Chahir Zaki at the World Bank, Egypt is yet to meet its export potential.

During their years of best performance in the late 2000s, Egyptian exports were just about comparable with those of an average middle-income country. Other countries that started from a lower baseline in the early 2000s have grown their exports faster, Youssef and Zaki write.

  • “Trade procedures and documentation create a lengthy and costly clearance process” for imports and exports, especially when compared to other countries in the Middle East and North Africa, according to Youssef and Zaki.
  • High trade costs for imports are part of the problem. They exert “a negative effect on exports, given the large reliance of domestic production on imported intermediate inputs.”
Bottom line

African free trade won’t realise its potential until transport costs come down. 

Source: theafricareport
Via: norvanreports
Tags: African Continental Free Trade Area (AfCFTA)African Import-Export BankCommon Market for Eastern and Southern Africa (COMESA)Egyptnew transit guarantee scheme
No Result
View All Result

Highlights

OPEC+ Nears Decision Point on Next Oil Output Hike

Europe’s Energy Future Hinges on Global Powers

US Companies Cut Investments in China to Record Lows, Here’s Why

How AI is Rewriting and Enhancing Water Risk Management

SheFarms Broiler Edition Kicks Off in Greater Accra

PharmAccess Ghana, Healthcare Federation of Ghana sign SafeCare License Agreement; to use Newest ISQua-Certified Version 5

Trending

Business

Multichoice Rebuffs Minister’s Claim On DSTV Price Cuts, Cites Market Conditions

August 3, 2025

Multichoice Rebuffs Minister's Claim On DSTV Price Cuts, Cites Market Conditions MultiChoice Ghana has pushed back against...

MTN Nigeria Now the Most Capitalized Stock in Nigeria

August 3, 2025

Nigerian Stock Market Creates Largest Pool of Billion-Dollar Stocks in 2025

August 3, 2025

OPEC+ Nears Decision Point on Next Oil Output Hike

August 3, 2025

Europe’s Energy Future Hinges on Global Powers

August 3, 2025

Who we are?

NORVANREPORTS.COM |  Business News, Insurance, Taxation, Oil & Gas, Maritime News, Ghana, Africa, World

NorvanReports is a unique data, business, and financial portal aimed at providing accurate, impartial reporting of business news on Ghana, Africa, and around the world from a truly independent reporting and analysis point of view.

© 2020 Norvanreports – credible news platform.
L: Hse #4 3rd Okle Link, Baatsonaa – Accra-Ghana T:+233-(0)26 451 1013 E: news@norvanreports.com info@norvanreports.com
All rights reserved we display professionalism at all stages of publications

No Result
View All Result
  • Home
  • Business
    • Agribusiness
    • Aviation
    • Energy
    • Insurance
    • Manufacturing
    • Real Estate
    • Maritime
    • Tourism
    • Transport
    • Banking & Finance
    • Trade
    • Markets
  • Economy
  • Reports
  • Technology
    • Cryptocurrency
    • Cyber-security
    • Social Media
    • Tech-guide
    • Telecom
  • Features
    • Interviews
    • Opinions
  • Lifestyle
    • Entertainment
    • Sports
    • Travel
    • Environment
    • Weather
  • NRTV
    • Audio
    • Video

Welcome Back!

Login to your account below

Forgotten Password?

Create New Account!

Fill the forms bellow to register

All fields are required. Log In

Retrieve your password

Please enter your username or email address to reset your password.

Log In
NORVANREPORTS.COM | Business News, Insurance, Taxation, Oil & Gas, Maritime News, Ghana, Africa, World
This website uses cookies. By continuing to use this website you are giving consent to cookies being used. Visit our Privacy and Cookie Policy.
We use cookies to ensure that we give you the best experience on our website. If you continue to use this site we will assume that you are happy with it.