International Courant
The Intra-African Commerce Alternate (IATF) is a robust device that stimulates the continent’s financial progress by selling intra-African commerce. Held each two years, this occasion brings collectively firms, governments and stakeholders from throughout Africa to attach, discover alternatives and shut offers. IATF2023, the newest version which concluded in Cairo, Egypt in November 2023, additional enhanced the significance of the truthful. Along with facilitating enterprise offers, the IATF offers beneficial sources and insights to handle essential subjects similar to commerce finance, investments and girls in commerce, empowering entrepreneurs and enterprise leaders throughout Africa.
On this interview, Ms Kanayo Awani, Govt Vice President (Intra-African Commerce Financial institution) at Afreximbank underlines the essential position of IATF2023 in shaping a future the place intra-African commerce thrives and contributes considerably to the continent’s financial prosperity .
Might you kindly share insights on the success of this 12 months’s IATF occasion? Did the variety of attendees exceed expectations?
When it comes to participation, each digital and bodily, IATF 2023 attracted 28,282 guests. We initially introduced 1,615 exhibitors, however after the audit we ended up with 1,939, far exceeding our goal of 1,600. The variety of taking part international locations, together with exhibitors, delegates and audio system, reached 130, considerably exceeding our goal of 75. Notably, 45 African international locations had been represented via pavilions or company entities. Of those, 42 had been particular African nation pavilions. As well as, 16 non-African international locations had been represented, making a complete of 61 international locations taking part.
The entire worth of commerce and funding agreements was $43.7 billion, exceeding our preliminary estimates. This achievement is a testomony to the success of IATF 2023 as we exceeded nearly all of our self-set targets. Though attendance numbers fell barely in need of our goal, the general consequence was undoubtedly profitable.
What are a few of the key initiatives carried out by the IATF which are related to the funding?
A key instance is the Engineer Procure and Assemble initiative, launched in collaboration with the Egyptian authorities. This initiative goals to assist intra-African funding flows and encourage African firms to capitalize on the $60 billion being spent on infrastructure tasks throughout the continent.
Now we have additionally launched a digital platform referred to as the Tenders Portal to make sure well timed entry to related enterprise alternatives and join them with succesful African firms. This platform offers firms with the data and instruments wanted to grab beneficial alternatives. Lastly, the Transit Assure Scheme facilitates the seamless motion of products throughout the continent. This plan, presently being examined, makes use of a technology-enabled transit bond to streamline cross-border commerce alongside the Cairo-Cape City hall. With an preliminary funding ticket of $300 million and a continental goal of $1 billion, this initiative has the potential to considerably increase regional commerce.
These are simply a few of the initiatives we now have carried out to not solely spotlight alternatives, but additionally allow companies and people to reap the benefits of them. We purpose to supply the mandatory sources and assist to unlock Africa’s potential and promote sustainable progress.
Please present extra perception into the Financial institution’s work to allow African international locations to develop favorable and aggressive automotive legal guidelines and insurance policies.
Our automotive technique rests on three pillars: coverage and advocacy, worth chains and financing. We assist insurance policies that promote a thriving automotive ecosystem in Africa. This contains annual advocacy efforts and supporting the truthful commercialization of requirements. We labored with Ghana and Egypt to evaluation their automotive insurance policies, creating an enabling atmosphere for manufacturing and financing. As well as, we’re working with the African Continental Free Commerce Zones and advocacy teams to design a complete automotive technique for Africa, which is domesticated by a number of African international locations.
We’re additionally engaged on a complete worth chain technique, the place the automotive sector will assist worth chains. A mirrored image of the European Airbus mannequin the place elements are unfold throughout a number of international locations for productions such because the flight controller in France, the wings within the UK and elements of the fuselage in Germany; we envision the same ecosystem for car elements, with a number of African international locations specializing in particular elements. To this finish, we supported a price chain examine carried out in West Africa and now being expanded throughout the continent.
Our remaining pillar of the automotive technique is financing. Recognizing the necessity for monetary assist, we assist your entire automotive worth chain, from unique tools producers to elements producers. This contains our work on battery precursor growth in partnership with the United Nations Financial Fee for Africa.
Kanayo Awani
What have been a few of Afreximbank’s investments within the pharmaceutical trade and the drug sector usually to strengthen the healthcare panorama on the continent? And to what extent have gamers on this sector been in a position to reap the benefits of the alternatives supplied by the financial institution and IATF?
Afreximbank has persistently advocated for interventions within the pharmaceutical and healthcare sectors, notably via the African Medical Heart of Excellence (AMC). This 500-bed quaternary hospital, presently beneath building in Nigeria, serves as a flagship initiative for the financial institution and paves the way in which for comparable services in Central, Northern, Jap and Southern Africa. Developed in partnership with King’s School Hospital, the AMC represents a big funding in healthcare infrastructure throughout the continent.
Exterior the AMC, Afreximbank is actively concerned in influencing coverage inside the pharmaceutical sector. An essential initiative considerations the harmonization of requirements for pharmaceutical merchandise and medical consumables. In collaboration with the African Requirements Group, the financial institution has already harmonized greater than 200 requirements on this space. Rising from the challenges confronted by the COVID-19 pandemic, this initiative goals to allow smoother commerce and handle points associated to medical provides similar to private protecting tools and face masks.
Particularly, Afreximbank facilitated quite a few conferences via its IATF program, in collaboration with the Egyptian Council for Medical Industries. This consumers program facilitated greater than 650 conferences between Egyptian and a number of other African international locations, specializing in prescription drugs, veterinary merchandise, medical provides, gadgets and cosmetics. Taking part African international locations included Mauritius, Nigeria, Uganda, Kenya, Ethiopia, Zimbabwe, Togo, Benin, Tanzania, Malawi and Egypt.
Along with its advocacy and growth efforts, Afreximbank stays dedicated to financing interventions inside the pharmaceutical and healthcare sectors. This ‘plain vanilla’ enterprise mannequin entails using credit score services, commerce finance and mission finance, along with risk-bearing devices similar to ensures and advisory companies. As well as, the financial institution gives fairness financing via its affect fairness fund and the Fund for Export Growth in Africa. As well as, Afreximbank’s specialist insurance coverage division, Afrexinsure, gives complete insurance coverage options. Lastly, the financial institution’s mission preparation unit helps potential transactions by conducting feasibility research and changing concepts into bankable tasks.
The implementation of the African passport stays a boon for enterprise vacationers on the continent. What’s the IATF doing to advertise the implementation of this crucial instrument?
As you possibly can think about, IATF requires the implementation of the aforementioned device. The organizers of the IATF, together with Afreximbank, the AfCFTA Secretariat and the African Union Fee, are deeply invested in its success. This initiative, pushed by the African Union Fee beneath the Protocols of Free Motion and Residence for African Folks, remains to be being actively pursued. Afreximbank and IATF are robust supporters of this initiative because it considerably facilitates interplay and allows commerce, particularly intra-African commerce, by permitting individuals to maneuver freely between African international locations for enterprise functions. I’ll go away it at that as this initiative stays led by the African Union Fee.
Algeria has been introduced as host of the subsequent version of the IATF. Are you able to share the standards utilized in making this choice?
Whereas we didn’t essentially select a bunch nation instantly, we adopted a particular course of for choosing the situation of the subsequent Intra-African Commerce Truthful. Each cycle, together with the upcoming one, we launch a request for proposals (RFP) open to African Commerce Ministers. This RFP invitations international locations to precise their curiosity and reply to our standards.
Within the case of Algeria, three international locations had been shortlisted. Nevertheless, the ultimate choice was decided by the infrastructure of the situation. The IATF has grown considerably and requires roughly 40,000 sq. meters of exhibition area alone. As well as, we’d like a venue outfitted with world-class services to host a wide range of aspect occasions, together with gastronomic occasions, artistic applications and numerous vertical commerce festivals. Algeria’s infrastructure, together with the situation itself, the lodging choices and the variety of resort beds, offered the perfect ecosystem to assist a profitable IATF.
Our choice course of is strict. After the preliminary evaluation of the RFP response, we interact the IATF Advisory Board, which consists of Member States, growth companions and influential people. A particular choice committee, composed of the Advisory Council and together with representatives of economic establishments, worldwide organizations, growth organizations and outstanding Africans, will conduct a radical evaluation. This contains on-site due diligence and conferences with native stakeholders in every shortlisted nation. Lastly, the committee submits its recommendation to the Advisory Council for approval. In some circumstances, the Council could even request interviews with key stakeholders within the shortlisted international locations.
Primarily, our choice course of prioritizes places which are appropriate for the rising scale and scope of the IATF. We keep in mind components similar to accessible area, venue infrastructure and the general ecosystem required to host a profitable occasion. This cautious evaluation finally led to our number of Algeria for the IATF 2025, along with their optimistic response to the RFP.
IATF2023 is a catalyst for intra-African commerce – Kanayo Awani, EVP, Afreximbank
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