A lack of information rather than a lack of infrastructure is the biggest barrier to intraAfrican trade, according to African Export-Import Bank (Afrieximbank) executive VP, Amr Kamel. He said that intra-Africa trade accounted for only 15% of the continent’s US$1 trillion of total annual global trade in the world. Speaking at the Afrieximbank’s 18th Annual Structured Trade and Finance seminar and workshop in Casablanca, Morocco earlier this month, Kamel commented that the logistics infrastructure currently available on the continent could help boost the value of intra-African trade once the relevant information was available. “The right policies, which include transparency and informationsharing, could see the current US$150 billion value of annual intra-African trade reviewed upwards,” he said, adding that he was “confident” more countries would come onboard with the African Continental Free Trade Agreement (AfCTA) which would provide more insight into the trade opportunities offered on the continent. “The train has left the station. Either you join or get left behind.” He said that structured trade finance solutions offered Africa “a vital pathway” to boost intra-African trade and increase the continent’s global exports. According to Kamel there is still “a deficit of expertise” in structured finance in Africa, even though it is widely acknowledged as a highly effective trade financing tool. “Afreximbank remains committed to equipping African financiers with the knowledge required to structure bankable trade and trade-related project finance transactions,” he said.
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The present infrastructure can raise the value of intra-African trade once the relevant information is available. – Amr Kamel
