Trademark Africa seeks to raise & invest $700mn in trade facilitation

Trademark Africa, a key player in trade facilitation, has recently revealed plans to invest a staggering $700 million over the next seven years in a bid to enhance trade facilitation and automation in Africa. This significant investment is anticipated to propel Intra-Africa trade from its current level of 14 per cent to a promising 25 per cent. CNBC Africa had the opportunity to delve deeper into this groundbreaking initiative with Allen Asiimwe, the Deputy CEO and Chief of Programmes at Trademark Africa.Over the past decade, Trademark Africa has been actively involved in trade facilitation efforts across Eastern Africa, collaborating with governments, the private sector, and civil society to streamline business operations and reduce trade-related costs and time. Acknowledging the progress achieved through these efforts, the organization has now pivoted towards a more comprehensive approach that not only focuses on efficiency gains but also encompasses strategies to boost exports, job creation, foreign direct investment (FDI), and poverty reduction. This shift in strategy led to the identification of three key areas for intervention: green trade initiatives, digital transformation leveraging blockchain technology for enhanced trade information sharing, and fostering inclusivity to ensure that all segments of society benefit from trade opportunities.Asiimwe highlighted the commencement of the seven-year investment strategy on July 1st, which will span across 14 countries in Eastern and Southern Africa. The organization's expansion to cover the entire African continent underscores its commitment to supporting the goals of the African Continental Free Trade Area (AFCFTA). A significant portion of the $700 million investment will be allocated to digital enhancements, including blockchain technology adoption and automation of trade processes. Furthermore, Trademark Africa aims to address infrastructure challenges and prioritize initiatives to empower marginalized groups, such as women, children, and youth.Through its strategic initiatives, Trademark Africa aims to unlock the vast potential of the AFCFTA, which is projected to facilitate substantial economic opportunities and deeper integration across the continent. The implementation of the AFCFTA has already shown promising signs of increased intra-regional trade and reduced business costs, ultimately translating into enhanced purchasing power for citizens. Asiimwe emphasized the transformative impact of the AFCFTA, highlighting the potential for African countries to significantly elevate their trade volumes from the current 14% to over 25%, fostering economic growth, job creation, and heightened investments. The initiative is projected to unleash over $3.5 trillion within the African economy, driving prosperity and socio-economic development for the continent.Looking ahead, Asiimwe underscored the growth-focused budgets of countries like Kenya and Uganda, emphasizing their commitment to value addition and industrialization to bolster trade within the continent. These countries are actively pursuing strategies to enhance the quality and value of their products, aligning with Trademark Africa's objectives of promoting sustainability and efficiency in trade practices. From promoting green produce to facilitating greener modes of transportation, collaboration between governments and organizations like Trademark Africa is poised to revolutionize trade dynamics in Africa, creating a pathway for robust economic expansion and regional integration.