Although an Afreximbank 2022 report revealed that intra-African trade reached USD 193.17 billion, an increase of 18.6%, the fact remains that the potential of trade between African countries is far from being realized. This is because trade accounted for ‘only 15% of Africa’s total trade’.
To make the most of this market, the African Export-Import Bank (Afreximbank) is stepping up its initiatives. These include the Intra-African Trade Fair (IATF), the third edition of which will be held in Cairo, Egypt, from November 9 to 15, 2023. Organized in partnership with the African Union Commission (AUC) and the African Continental Free Trade Area (AfCFTA) Secretariat, the event aims to provide a unique platform to facilitate the exchange of trade and investment information to support the development of intra-African trade and investment, particularly in the context of the implementation of the African Continental Free Trade Area (AfCFTA) Agreement.
For Professor Benedict Oramah, President and chairman of the Bo
ard of Directors of Afreximbank, the biggest challenge on the continent is the lack of trade ad market information of what exists within the continent. A resident of an African country, he says, knows more about what is happening in America, Europe and Asia than what is happening in a neighboring country across the border. To remedy this, he believes, ‘we need to create a platform like IATF, where Africans can gather to understand their markets, know themselves and understand more about the African countries. Egypt has been a major beneficiary of the IATF. At the first trade fair in 2018, which was held in Cairo, Egypt signed the largest share of deals out of the trade and investment deals closed at the event,’ he recalled. Although the fair is dedicated to intra-African trade, it is attended by continental and international players who present ‘business and investment opportunities on the continent’. The IATF also provides a platform for the exchange of trade, investment and market information with stakehold
ers, and enables participants to examine and identify solutions to the challenges confronting intra-African trade and investment.
Nearly $43 billion in trade and investment deals expected
Looking back at the first two editions of the fair, figures show that more than 2,500 exhibitors from 77 countries and more than US$74 billion worth of transactions were concluded. For Olusegun Obasanjo, Chairman of the IATF2023 Advisory Council and former President of the Federal Republic of Nigeria, the Roadshow is a treasure trove of opportunities that African countries must take advantage of.
over 1,600 exhibitors and 35,000 visitors, buyers and conference delegates from all 55 African countries, and the rest of the world are expected to attend. Obasanjo went on to say that the event is expected to generate more than US$43 billion in trade and investment agreements.
According to Grace Khoza, Principal Communications Adviser, representing the Secretary General of AfCFTA, the fair is not just about trade: it is an aven
ue through which Africans get to connect and know each other. ‘Africans need to understand what products are produced in different regions of Africa that could be exported to other regions within Africa. Egypt being the second largest economy in Africa stands to benefit from immense opportunities presented by the IATF as an AfCFTA marketplace,’ she said.
Afreximbank, a catalyst for AfCFTA
Afreximbank intends to play a leading role in this drive to improve trade between African countries. According to the United Nations Conference on Trade and Development, the AfCFTA could boost intra-African trade by around 33% and cut the continent’s trade deficit by 51%. A study by the UN Economic Commission for Africa goes even further. It shows that with a time horizon of 2030, cargo transported by vessels would increase from 58 million to 132 million tons with the implementation of AfCFTA.
Afreximbank wants to help unlock this potential. This is the purpose of the single window launched in cooperation with the African
Continental Free Trade Area (AfCFTA). Afreximbank has also made one billion dollars available to AfCFTA as part of the Adjustment Fund. This fund is designed to support countries mitigate the potential adverse impacts of AfCFTA-induced tariff revenue losses and adjust smoothly to the new liberalized and integrated trading environment of the Common Market.
Source: Africa News Agency