Afreximbank Will Launch Digital Ecosystem to Capture $60 Billion Informal Trade
The African Export–Import Bank (Afreximbank) announced that it is working on creating a digital ecosystem that will eliminate major bottlenecks to trade and financial flows within Africa.
The digital ecosystem when completed, could triple the share of intra-African trade in Africa’s total trade and formalise significant proportions of the over $60 billion yearly informal cross border trade on the continent.
The ecosystem will include a Pan-African payment and settlement platform; a customer due diligence repository platform also known as MANSA; a trade information portal; a regulatory platform; an Interstate Transit Guarantee Platform; and an Afreximbank credit application platform.
The President of Afreximbank, Prof. Benedict Oramah, who revealed the development at the 2019 bullion lecture organised by the Centre for Financial Journalism in Lagos, Nigeria, said the Pan-African payment and settlement platform is being developed to facilitate intra-African trade payments and settlement in African currencies.
The platform, which will be launched in the second quarter of 2019, will reduce the use of foreign currencies in settling intra-African trade, thereby potentially boosting intra-African trade by at least 40 percent.
In 2018, Afreximbank also launched and hosted the maiden edition of the Intra-African trade fair, which is expected to facilitate networking, information exchange and cross border trade.
The fair aims to create a true pan African trade platform for effective interaction among African entrepreneurs. In line with expectations, the inaugural trade fair which held in Cairo in December 2018, attracted over 7000 participants, over 1000 exhibitors and trade deals worth more than $32 billion.