Samuel Mobolaji
African Export-Import Bank (Afreximbank) has announced an innovative capacity development program aimed at empowering African corporates to leverage the African Continental Free Trade Area (AfCFTA) opportunities.
This initiative, led by Afreximbank Academy (AFRACAD) in collaboration with the AfCFTA Secretariat, is designed to equip businesses with the necessary skills and knowledge to thrive in the evolving intra-African trade landscape.
Afreximbank on Wednesday explained that the training program is scheduled from 9 to 13 September 2024 in Cairo, Egypt, and will be delivered in partnership with the American University in Cairo and the AfCFTA Secretariat.
According to the Bank, the training will focus on the business implications of AfCFTA and the numerous opportunities it presents for African corporates. It will provide members of Afreximbank’s TRADAR Club and other participants with practical insights to leverage the benefits of the Agreement.
“The program aims to translate the various treaty instruments of the AfCFTA into practical language that corporates can easily understand and will highlight the requirements businesses must meet to seize opportunities in the expanding AfCFTA market.”
Group Chief Economist & Managing Director of Research at Afreximbank, Dr Yemi Kale, emphasized the importance of developing local industrial competencies to enable African countries to benefit from the single market arrangements offered by AfCFTA.
Dr Kale stated, “Afreximbank is a key supporter of the AfCFTA, focusing on transforming Africa from a fractured, commodity-dependent group of economies to a vibrant, integrated single market of about 2 billion people with a combined GDP of about US$3.4 trillion. Well-informed and prepared businesses are crucial for driving intra- and extra-African trade and investment.
“ Through this training program, one of many capacity-building initiatives by the Bank, we aim to empower African businesses to fully exploit AfCFTA opportunities, enhancing their competitiveness and contributing to sustainable economic growth in Africa.”
Head of Capacity Building and Technical Assistance at the AfCFTA Secretariat Mr Tsotetsi Makong highlighted the importance of capacity building for the successful implementation of the AfCFTA.
He stressed the need for a value chain approach to capacity building, prioritizing human resource competencies, administrative procedures, regulatory infrastructure, and predictable institutional frameworks across state institutions involved in facilitating and executing trade transactions.
He said, “Investing in capacity building for corporates and SMEs will ensure that home-sourced investments are mobilized and deficits with third-country markets reduced, proving AfCFTA to be the single most important instrument that de-risks the African continent for investments.”
While AfCFTA has immense potential to support economic development, a lack of understanding of the technical nuances relating to the interpretation of the Agreement is impeding its full actualization. Some enterprises are also unable to fully take advantage of the Agreement or compete with new competitors from other regions.
The training program will focus on removing business environment hurdles and tackling the capacity constraints of African companies to support the transition from local production for local consumption to local production for continental and international export markets.
Participants will include African corporates (importers and exporters), trade support institutions (trade promoting organizations, chambers of commerce, and investment promotion agencies), export trading companies, the foreign trade community (investors), and bank executives.
