Afreximbank looks to sub-sovereign governments to deepen integration

In a bid to deepen regional integration and bolster grassroots participation in the Africa Continental Free Trade Area (AFCFTA), Kanayo Awani, the Executive Vice President of the Intra-African Trade Bank at Afreximbank, sheds light on the significance of the African Sub-Sovereign Government Network. Speaking in an interview with CNBC Africa, Awani highlighted the pivotal role played by sub-sovereigns in enhancing trade, investments, and economic growth across Africa, despite facing challenges such as fiscal constraints, administrative deficiencies, and perceived creditworthiness issues. Awani emphasized that the African Sub-Sovereign Conference aims to bridge the gap between national trade policies and local implementation. By supporting intra-African trade and investments, the network facilitates not only the deepening of regional integration but also ensures that local businesses and private sectors actively participate in reaping the benefits of the AFCFTA agreements. Afreximbank has committed approximately $2 billion to finance sub-sovereigns and businesses in Africa. One of the key hurdles faced by sub-sovereign governments is the lack of capacity, fiscal space, administrative capabilities, and the challenge of attracting finance due to perceived credit risks. To address these challenges, Afreximbank offers a suite of financial programs, including credit and project finance, investment guarantees, technical assistance, and project preparation facilities. The bank collaborates with partners like Financial Times to strengthen the capacity of investment promotion agencies and enhance project bankability. The upcoming conference in Kisumu aims to build on the successes of previous editions, where deals worth $1.5 billion were secured. This year, Afreximbank plans to facilitate similar high-value deals by focusing on capacitating investment promotion agencies through training programs to make states investment-ready. The conference will span three days to provide ample opportunities for engagement and practical discussions to drive intra-African trade and investments. Decentralization emerges as a key theme in Afreximbank's strategy, echoed by Kisumu County Governor Peter Nyong'o, who underlines its importance for Africa's economic growth. By decentralizing trade policies and promoting domestication at the local level, Afreximbank aims to foster deeper integration among sub-sovereigns and drive trade initiatives at the grassroots level. The bank advocates for devolution of powers from central authorities to sub-national governments to enhance regional integration and promote inclusive economic development within Africa.