Since the creation and implementation of the African Continental Free Trade Area (AfCFTA), several major players on the continent have mobilized to ensure that this project keeps all its promises. The institution received early support from the African Export-Import Bank (Afreximbank).
A Key Player Who Intends to Fully Play Its Role
The Afreximbank is a pan-African multilateral financial institution dedicated to financing and promoting intra- and extra-African trade. Afreximbank deploys innovative structures to provide financing solutions that facilitate the transformation of the structure of African trade and accelerate industrialization and intra-regional trade, thereby supporting economic expansion in Africa. As a strong supporter of the AfCFTA, Afreximbank has developed a Pan-African Payment and Settlement System (PAPSS) which has been adopted by the African Union (AU) as the payment platform and regulations to support the implementation of the AfCFTA.
Operationalizing the AfCFTA Adjustment Fund
The Afreximbank has renewed the $1 billion facility granted to the AfCFTA on the sidelines of its 134th meeting, which was held in Cairo on June 13, 2022. According to the institution's statement, the institution also approved a $10 million grant to supply the Zlecaf Adjustment Fund's base fund. The latter will be used to mobilize grants to address tariff revenue losses and to assist member states in implementing the organization's various protocols.
“Afreximbank is delighted to have been appointed the Fund Manager of the AfCFTA Adjustment Funds following the extensive collaborative work it has done with the AfCFTA Secretariat and the Africa Union Commission during the past few years. The renewal of the US$1 billion facility and the US$10 million grant funding represents resounding entrustment by our Board of Directors of these efforts. These facilities will again be contributing to making a great idea a reality. We thank the AfCFTA Secretariat for the solid partnership that is bringing the aspirations of the AfCFTA within reach,” said Professor Benedict Oramah, President and Chairman of the Board of Afreximbank.
A Little Reminder about the AfCFTA
AfCFTA is based on the African Continental Free Trade Agreement. It has the largest number of participating countries in the world since the creation of the World Trade Organization. Negotiated by the AU and signed by roughly forty countries from its 55 member states on March 21, 2018, the agreement is continuing to include new countries. This agreement initially obliges members to remove customs duties from 90% of goods, allowing free access to basic products, goods, and services in Africa.
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