The African Export-Import Bank (Afreximbank) urged African countries to prioritize Export Trading Companies to boost SMEs’ involvement in global trade.
Mrs. Kanayo Awani, Afreximbank’s Executive Vice President, Intra-African Trade Bank disclosed this during the Africa International Exhibition at the just concluded 78th United Nations General Assembly.
Adopting Asia’s ETC model
Mrs Kanayo Awani who spoke on behalf of Bank President Prof. Benedict Oramah said that SMEs’ participation in global trade faced huge competition from multinationals which sees their chances of growth limited.
She highlighted how Asia was able to solve this problem by developing ETCs to act as leverage through which SMEs within their continent could access global markets.
She noted that ETCs help create a huge trade volume that attracts greater value and withstands competition from large corporations.
Role of AfCFTA
Mrs Awani also highlighted how policy bottlenecks within the African continent limited the participation of Africa’s SMEs in global value chains.
She called for strong policy support systems that would help improve SMEs’ access to regional markets and access to finance.
According to her, AfCFTA plays a huge role in implementing these policies.
- “These are particularly urgent as Africa commences implementation of the African Continental Free Trade Agreement (AfCFTA).”
Afreximbank also launched a $ 1 billion Creative Africa Nexus (CANEX) program to support the African creative industry.
Mrs Awani noted that this rapidly growing sector had become a significant export earner in several African countries, including Nigeria and South Africa.
More Insights
United Bank of Africa (UBA) partnered with AfCFTA to launch a $6 billion financing initiative aimed at boosting the growth of Small and Medium Enterprises (SMEs) throughout Africa.
This initiative is designed to provide funding access to SMEs in the Agro-processing, Pharmaceuticals, Automotive, Transport, and Logistics sectors, facilitating their expansion.
This initiative aims to deliver $6 billion in funding to eligible SMEs throughout Africa within the next three years.
What You Should Know
Recall, that Nairametrics reported that Zenith Bank had signed a Memorandum of Understanding with the African Continental Free Trade Area (AfCFTA) to build a smart portal for trade on the continent.
Zenith is to fund the single portal for trade information in Africa with $1 million.
The MoU was signed by the Group CEO of Zenith Bank, Dr. Ebenezer Onyeagwu and the Secretary-General of the AfCFTA, Wamkele Mene during the 2023 Zenith Bank International Trade Seminar in Lagos.
