Intra-African trade fair set to unlock the continent’s potential

Intra-African trade has long been seen as a key driver of economic growth and development on the continent. However, despite its potential, trade among African countries has remained relatively low, accounting for around 12 to 15% of total trade volume. The recent signing of the African Continental Free Trade Agreement (AfCFTA) has set the stage for a new era of trade relations among African nations, but there are still several challenges that need to be addressed to unlock the full potential of intra-African trade. Amr Kamel, Executive Vice President of Business Development and Corporate Banking at Afreximbank, believes that the upcoming Intra-African Trade Fair will play a crucial role in addressing the bottlenecks that have hindered trade on the continent. In a recent interview on CNBC Africa, Kamel highlighted the importance of the trade fair in facilitating conversations and initiatives that will drive increased trade among African countries. One of the key issues that Kamel pointed out is the lack of trade information and awareness among businesses in African countries. Many countries are still importing goods from outside the continent, even when similar products are being produced by neighboring countries. Bridging this gap in information and promoting intra-African trade will be a central focus of the upcoming trade fair. In terms of financing, Kamel emphasized the importance of facilitating payments and exchange flows to support trade activities. Afreximbank is working on initiatives such as a Pan-African payment and settlement platform to reduce foreign exchange risks and enhance correspondent banking relationships across the continent. By providing innovative financing solutions, banking institutions can play a key role in unlocking the potential of intra-African trade. Policy harmonization is another critical factor that needs to be addressed to ensure a smooth flow of trade initiatives across African countries. Kamel highlighted the ongoing conversations with leaders and policymakers to align policies and standards to facilitate cross-border trade effectively. Establishing mechanisms for harmonization and standardization will be essential to drive sustainable trade growth in the region. Looking ahead, Kamel underscored the importance of embracing technology and fintech solutions in shaping the future of corporate banking. As the world enters the fourth industrial revolution, leveraging digital tools and innovative technologies will be key to staying competitive in the banking sector. Kamel emphasized the role of technology in revolutionizing banking services and urged banks to embrace digital transformation to remain relevant in the evolving financial landscape. The Intra-African Trade Fair is poised to be a catalyst for change in the region, fostering discussions and collaborations that will pave the way for increased intra-African trade. By addressing key challenges such as information gaps, financing barriers, and policy harmonization, African countries can unlock the full potential of trade relations and drive economic growth across the continent.