{"id":466328,"date":"2019-07-08T17:29:52","date_gmt":"2019-07-08T16:29:52","guid":{"rendered":"https:\/\/www.kapitalafrik.com\/?p=466328"},"modified":"2019-07-08T17:35:48","modified_gmt":"2019-07-08T16:35:48","slug":"afreximbank-announces-1-billion-adjustment-facility-other-afcfta-support-measures-as-african-leaders-meet","status":"publish","type":"post","link":"https:\/\/www.financialafrik.com\/en\/2019\/07\/08\/afreximbank-announces-1-billion-adjustment-facility-other-afcfta-support-measures-as-african-leaders-meet\/","title":{"rendered":"Afreximbank announces $1-billion Adjustment Facility, Other AfCFTA Support Measures as African Leaders Meet"},"content":{"rendered":"
<\/div>

Prof. Benedict Oramah, President of the African Export-Import Bank (Afreximbank), yesterday in Niamey, addressed the 12th<\/sup>\u00a0Extraordinary Summit of African Union (AU) Heads of State, announcing a series of initiatives to support the implementation of the Agreement for the African Continental Free Trade Area (AfCFTA).<\/p>\n

Prof. Oramah told the heads of state, who were gathered to mark the start of the operational phase of the AfCFTA, that Afreximbank was instituting a $1-billion AfCFTA Adjustment Facility to enable countries adjust in an orderly manner to sudden significant tariff revenue losses as a result of the implementation of the agreement.<\/p>\n

\u201cThis facility will help countries to accelerate the ratification of the AfCFTA,\u201d he said, telling the heads of state that, by starting the operational phase of the AfCFTA, \u201cyou have started a movement.\u201d<\/p>\n

\u201cYou must not look back,\u201d continued the President. \u201cThis movement is now unstoppable.\u201d<\/p>\n

He added that, as part of its support for the implementation of the AfCFTA, the Bank had provided support to aid the work being done by the African Regional Standards Organisation and the AU in implementing the Agreement.<\/p>\n

Professor Oramah also informed the Summit of the launch the Pan-African Payment and Settlement System (PAPSS), the first continent-wide payment digital system focused on facilitating payments for goods and services in intra-African trade in African currencies.<\/p>\n

\u201cToday we will launch the Africa-wide digital payment infrastructure – the Pan-African Payment and Settlement System (PAPSS) – that we developed in collaboration with the African Union,\u201d he said. \u201cIt is a platform that will domesticate, intra-regional payments, save the continent more than $5 billion in payment transaction costs per annum, formalise a significant proportion of the estimated $50 billion of informal intra-African trade, and above all, contribute in boosting intra-African trade.\u201d<\/p>\n

Prof. Oramah stated that, by making it possible for Africans to pay for intra-regional trade in their local currencies, \u201cthe digital platform will deal a fatal blow to the underdevelopment of Africa caused by defragmentation of its economies. Our goal is to reduce, significantly, the foreign currency content of intra-African trade payments.\u201d<\/p>\n

Noting that \u201cNo people have achieved meaningful\u00a0development when their economic progress depends on others,\u201d he argued that, in the\u00a0\u201crenewed focus on industrial and value-chain development across the continent in trying to boost trade and investment, it is imperative that we address the economic costs of effecting so many payments in scarce foreign exchange.\u201d<\/p>\n

\u201cMaking cross-border payments easier, cheaper and safer is an obvious critical step in creating an Africa we want,\u201d he concluded.<\/p>\n

<\/div>","protected":false},"excerpt":{"rendered":"

Prof. Benedict Oramah, President of the African Export-Import Bank (Afreximbank), yesterday in Niamey, addressed the 12th\u00a0Extraordinary Summit of African Union (AU) Heads of State, announcing a series of initiatives to support the implementation of the Agreement for the African Continental Free Trade Area (AfCFTA). 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