Panelists at the ongoing second edition of the Intra-African Fair 2021 in Durban, South Africa, have stated that the biggest impact on Africa’s growth and economic integration goals will come from investments in large infrastructure projects.
Discussing the topic: “Trade promotion initiatives of multinational development finance institutions on the context of AfCFTA,” they said the infrastructure deficit that existed on the continent must be addressed if the dream of development and economic integration were to be achieved.
The second Intra-African Trade Fair being held here brings together continental and global buyers and sellers.
It will enable stakeholders to share trade, investment and market information, as well as trade finance and trade facilitation solutions designed to support Intra-African trade and the economic integration of the continent.
The event is being held physically and virtually.
Mr Amr Kamel, Executive Vice President, Business Development and Corporate Banking, Afreximbank, in his opening remarks during the discussion held on Tuesday said, infrastructure investment was critical for regional integration of Africa.
He said many African economies were moving away from being heavily dependent and taking the necessary steps towards adding value to their exports and implementing industrialisation strategies.
He however, stated that, “one of the key factors inhibiting industrialisation has been the insufficient infrastructure in our world of transportation that will allow companies to thrive and have strong competitive advantages.”
Mr Kamel said Afreximbank, together with the African Union and the AfCFTA Secretariat, a Pan-African Payment and Settlement System (PAPSS) to facilitate cross-border payments in national currencies, had been created.
The system, which is currently piloting in the West African Monetary Zone (WAMZ), he said, will strengthen national currencies, integrate Africa’s payment infrastructure, and save the continent about 5 billion US dollars in transfer charges.
The project, he said, would return to Africa large volumes of trade diverted away from the continent due to currency issues.
Afreximbank, he said, was supporting the pilot with an amount of 500 million US dollars and expects to expand this to three billion US dollars when fully adopted across Africa.
He called for support for Small and Medium Size Enterprises as they remained an important drivers of economic growth.
“They are among the most significant contributors to African economies, but seem to attract the lowest amount of support from banks,” he said.
For his part, Mr Solomon Quaynor, Vice President, Private Sector-Infrastructure and Industrialisation, African Development Bank Group, said the Bank had contributed immensely in supporting infrastructure development on the African continent.
He said, his outfit had planned to invest about $2 billion in infrastructure and industrialisation activities.
Engineer Hani Salem Sonbol, Chief Executive Officer, International Islamic Trade Finance Corporation (ITFC), said the institution had been a catalyst for growth in key African industries, serving as a major source of capital and a springboard for cross-border trade and exports.
With the aim of highlighting the continent’s immense economic potential, he said Africa would continue to feature strongly in ITFC’s target sustainable financing strategy for the next 10 years.
FROM DAVID ADADEVOH, DURBAN, SOUTH AFRICA
