Global Markets

Africa Transformed: How will Intra African Trade Impact Growth in 2021?

With the estimated volume of trade between countries in Africa valued at about $1trillion every year. The Executive Vice President, Business Development and Cooperate Banking Africa Export and Import Bank Amr kamel, during the structure trade finance seminar and workshop in Casablanca, Morocco said that “there are possibilities for more growth if identified barriers were removed”.

Already 44 countries out of 54 nation continent have been boarded into the initiative that is expected to increase trade efficiency among the African economies with goals of increasing volume, value, productive ability, employment as well as domestic product growth. Amr stated that he has gulp break down the many barriers that have made it difficult for Africans to trade with each other. “However it also presents a huge challenge, in that the missing link in African trade is the absence of trade and business information across borders because of our past colonial experience. Most African countries are still strongly linked to thetheir former colonial countries” he added that, this has not been productive because goods are been sold to African countries at exorbitant prices even when the item to be purchased can be bought less expensively from a nearby African country.

To ignite Intra African trade, to boost the continent, the “Impact 2021 Africa Transformed” was put in place. Aimed at facilitating a 50 percent growth in Intra African trade, worth $250 billion by 2021 from the current estimated $170 billion bringing the Intra African trade share of total African trade to 12 percent. The plan will also see African export-import bank (Afreximbank) disburse not less than $90 billion on aggregate, on a revolving basis, in support of African trade to 2021 supporting Intra African trading to $25 billion.

The African Export and Import Bank is charged with industrialization and export development by addressing the constraints of industrialization in the continent. It’s intervention across Africa have included the development of the agro-processing, light manufacturing and tradable service sectors improving the African market and making it more competitive. this is a viable plan to improve Intra African trade as it will not only encourage trade in goods and services between and among African countries but will increase trade between Africans and Africans in diaspora.

 

REFERENCE

★ The Guardian Nigeria. (Bassey Udo,2018, November 10) “How intra African trade can grow AFREXIMBANK”.

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