- Afreximbank Stresses Importance of Intra-Africa Trade
African Export-Import Bank has emphasised the importance of intra-Africa trade, saying it has potential to transform the economy.
The Managing Director of the Intra-African Trade Initiative at the African Export-Import Bank, Kanayo Awani, specifically said Egypt could be a front runner in transforming intra-African trade and boosting innovation and industrialisation on the African continent.
He spoke in Cairo during the opening of a one-day workshop on intra-African trade, organised by Afreximbank.
Awani said that despite current low trade figures, opportunities abounded and there were many areas in which Egypt could expand its trade with the rest of Africa.
She said, “With the new significant policy shift toward export promotion, especially within Africa, and capitalising on regional trade agreements, like COMESA and the upcoming Continental Free Trade Area, an improved and dedicated shipping line from Sokhna Port to Mombasa, quality and competitive Egyptian products and services, Egypt can transform its trade with Africa and become a major trade partner.”
Egypt could expand its export trade in textiles, electricity, utilities and construction services, said Awani, who added that there were opportunities to boost pharmaceuticals exports to Nigeria, and furniture to Kenya, as well as to import beef from Sudan and fruits and vegetables from East Africa.
The managing director said that Afreximbank had engaged with Egyptian businesses last year in order to address their trade finance needs and to identify the trade facilitation issues they faced as they tried to expand into existing African markets or to enter new ones.
She explained that the bank decided to organise the workshop in order to respond to some of the concerns that had been expressed by the businesses and to share some of the bank’s interventions that responded directly to the issues raised.
Awani added that Afreximbank’s relationship with Egypt dated back almost 25 years, saying that since its inception in 1993, the bank had disbursed credit facilities in excess of $17.5bn in support of Egyptian corporates and financial institutions.
She added, ”That included funds disbursed through the Counter-cyclical Trade Liquidity Facility, which addressed financial liquidity gaps arising as a result of adverse economic shocks, and the Egypt-Africa Trade Promotion Programme, launched in January 2015 to help Egyptian entities tap into the rapidly expanding trade and investment opportunities in the rest of Africa.”
Afreximbank’s Chief Economist, Dr. Hippolyte Fofack, said that stronger intra-African trade was the path for leading African countries to take advantage of growth opportunities which, until recently, had been the preserve of non-African multinational companies.
According to him, a number of growth opportunities exist for Egyptian investors across sectors and regions, including in manufacturing industries, pharmaceutical and chemical industries as well as infrastructure and telecommunication.
The chief economist argued that the relatively low performance of intra-African trade, which was largely due to high product concentration, deficit of trade information and skewed direction of investments, offered tremendous opportunities for growth, taking advantage of economies of scale offered by the region which was set to become the fastest growing and largest market in the world, with its population projected to double by 2040.
