Diplomatic World 67

AFREXIMBANK WORKS
WITH AFRICAN INSTITUTIONAL PARTNERS
TO ACCELERATE TRADE
AND INVESTMENT INTEGRATION
UNDER AFCFTA
A record USD 42.1 billion in trade and trade-related investment
deals was generated at last year’s Intra-African Trade Fair in
Durban, South Africa. Organised by African Export-Import Bank
(Afreximbank), the African Union (AU) and the African Continental
Free Trade Area (AfCFTA) Secretariat, IATF2021 welcomed over
1,500 exhibitors from 46 African countries and 23 non-African
countries who showcased their goods and services to benefit
Africa.
The record investment value in deals is reflective of the record
participation, a strongly assembled platform, diversity and depth
of goods and services and a rich programme.
Attended by businesses, governments, diplomats and VIPs, the
event generated this record amount through a common purpose
that intra-Africa trade is taking root under the Africa Free Continental
Trade Agreement (“AfCFTA”). Momentum has continued
post IATF 2021 and the Afreximbank has signed more agreements
in its wake, underpinning its strategic focus on bringing
the continent together.
IATF2021 surpassed its target of USD 40 billion in trade and
investment deals and went well beyond the USD 32 billion in
transactions closed in Cairo, Egypt in 2018. In addition, the fair
attracted more than 32,000 participants including 1,501 exhibitors.
Afreximbank was a key player at IATF 2021 and continued the
momentum into 2022. In February 2022, Banque Misr announced
that it had invested USD 201.1 million in Afreximbank, becoming
the largest non-sovereign shareholder in the Bank and increasing
its stake from 3.1% to 5.8%.
The investment, via a General Capital Increase, aims to significantly
contribute to the Bank’s capacity to drive ongoing
Covid-19 recovery efforts, support the implementation of the
AfCFTA, while continuing to strongly support Egypt’s trade with
the rest of Africa as well as promote and finance intra-African
trade and export development.
In the same month, Afreximbank and the Secretariat of the
AfCFTA signed an agreement to support African countries and
the private sector to effectively participate in the new trading
environment established under the AfCFTA.
The funds will be used to address short term disruptions while
enabling the private sector to retool, reskill, and develop capabilities
to produce value-added goods and services that can be
traded competitively within the continent and provide the catalyst
for the emergence of AfCFTA-led regional value chains.
A loan agreement of EUR 250 million was signed on 17 February
2022, between Afreximbank and the German Development
Bank KfW, acting on behalf of the German Federal Ministry
Kanayo Awani, Managing Director African Export-Import Bank
IATF ended with a collective commitment from seven Heads of States, Government and businesses across the continent, to strengthen the AfCFTA. “Not a single Country
in Africa will be able to compete globally alone, hence African Countries must just integrate the market, something that has been evaded Africa from 1963, when our
forefathers hatched African Unity,” said H.E Wamkele Mene, Secretary General of the AfCFTA Secretariat
for Economic Cooperation and Development (BMZ). The loan
supports the Bank’s Covid-19 intervention programme, and
specifically its financing for the production, acquisition and
distribution of vaccines and medical supplies.
Following Afreximbank’s pivotal role in structuring and financing
the AVAT initiative that procured over 400 million doses of J&J
vaccines in order for Africans to receive their fair share of vital
protection in the face of global supply challenges exercebated
by vaccine nationalism, the Bank has continued work to support
member states as they collectively pursue the African Union’s
goal of vaccinating at least 70% of the continent’s population by
the end of 2022.
Many agreements have been signed during the Covid-19
pandemic and validate the Bank’s Covid-19 response strategy
and its extension to develop pharmaceutical capacity in Africa.
www.afreximbank.com
Photos: African Export-Import Bank
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