Afreximbank plans $43bn trade deals in IATF 2023

Afreximbank, the African Export-Import Bank, is gearing up to disburse a staggering $40 billion on a revolving basis by 2026 as part of its intra-African trade strategy. The bank is also on a mission to extend the frontiers of its interventions. In a recent interview with CNBC Africa's David Alabi on the side-lines of the Nigeria Roadshow leading up to this year's intra-African Trade Fair, Kanayo Awani, the Executive Vice President of Intra-African Trade Bank, shared the ambitious goal of closing $43 billion in trade and investment deals in the year 2023. The Roadshow aimed to raise awareness and sensitize both the Nigerian public and private sectors regarding the importance of the upcoming trade fair. Scheduled to take place in Cairo from the 9th to the 15th of November 2023, the event is expected to host 1,600 exhibitors, with deals worth at least $43 billion set to be finalized. Additionally, an anticipated 35,000 visitors, split between virtual and physical attendance, are expected, with at least half of them attending in person. During the conversation, Awani also shed light on Afreximbank's efforts to assist Nigerian businesses in leveraging the African Continental Free Trade Area (AfCFTA). Emphasizing the support provided by the bank to align with the AfCFTA objectives, Awani highlighted various initiatives and products tailored to bolster trade within the continent. Among these initiatives are the AfCFTA Adjustment Fund, aimed at aiding countries and businesses in transitioning smoothly amid trade liberalization, and the Pan-African Payments and Settlement System (PAPS) designed to address forex challenges, trade informality, and high exchange costs. Awani further delved into the African Trade Gateway, inclusive of PAPS, MANSA, a KYC repository, and other trade facilitation tools to streamline cross-border business operations. The introduction of the Transit Guarantee Scheme, the Africa Trade Exchange platform, and Industrial PACs and Special Economic Zones initiatives were also highlighted as crucial components of Afreximbank's strategy to foster intra-African trade. Specific success stories were shared, such as supporting the Gabon Special Economic Zone in becoming a major veneer wood exporter globally, showcasing the bank's commitment to driving industrialization and economic growth across African nations. Awani underscored the importance of quality assurance through Africa Quality Assurance Centers and the Africa Buyer Program's role in promoting domestic goods consumption. Furthermore, Awani touched on the Global Facility for Intra-African Trade Champions, SME Development Program, and the bank's target to double disbursement to $40 billion under the Impact 2026 strategic plan. In response to queries about potential integration with key trade partners like CARICOM and the Middle East, Awani clarified that PAPS is primarily tailored for intra-African trade. However, plans are in place to expand its reach across the continent. Currently operational with nine central banks and over 70 commercial banks, PAPS is envisioned to integrate with various platforms over time. In closing, Afreximbank's robust efforts and initiatives to enhance intra-African trade and foster economic growth underscore its commitment to driving Africa's economic development and global competitiveness.