Banking institution Afreximbank commits $2 billion to intensify African national governments' trade participation
In a significant move towards Africa's economic transformation, the President of Afreximbank, Benedict Oramah, has emphasized the importance of empowering sub-sovereigns. This financing, worth $2 billion, aims to promote economic development and trade across the continent.
The support provided by Afreximbank is flexible enough to meet diverse needs, and it has already been instrumental in funding several major projects, including industrial parks, deep seaports, and a pharmaceutical manufacturing facility.
The financing is intended to address regional inequality and boost cross-border commerce under the African Continental Free Trade Area (AfCFTA). This initiative is a key focus of discussions at the 5th African Sub-Sovereign Governments Network (AfSNET) conference, where the funding announcement was made.
Sub-sovereign governments, with their unique position, are well-placed to promote cross-border industrial clusters and invest in trade-enabling infrastructure. Local authorities, according to Oramah, play a critical role in realizing the benefits of the AfCFTA. African Continental Free Trade Area Secretary-General Wamkele Mene endorsed this initiative, emphasizing the importance of local authorities for implementing the trade pact.
One such example of local development can be seen in Kenya, where a blockchain-enabled, continuous manufacturing facility for essential medicines is underway. This project, Africa's first of its kind, is expected to produce approximately two billion tablets and capsules annually.
The Afreximbank African Trade Gateway is a digital transformation tool prioritized for making the AfCFTA work at local levels. This tool, combined with the financing, is expected to foster a more integrated and prosperous Africa.
Looking ahead, the next AfSNET conference will be hosted by Cross River State, Nigeria, in 2026. The conference will continue discussions on empowering sub-sovereigns and promoting economic development and trade across Africa.
Notably, Algeria, with the lowest inequality index in Africa, as measured by the Gini coefficient, has been successful in its decentralisation efforts. This success serves as a testament to the potential benefits of empowering sub-sovereigns for Africa's transformation.
