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Afreximbank to provide $1bn grant towards AfCFTA implementation
The African Export-Import Bank (Afreximbank) has revealed that it is providing a grant of $1 billion to African countries to support the implementation of the African Continental Free Trade Area agreement (AfCFTA).
Afreximbank President, Benedict Oramah, made this disclosure during an interaction with African Heads of States at the 12th Extraordinary Summit of African Union (AU).
A statement by Afreximbank’s spokesman, Obi Emekekwue, quoted Oramah as saying that the grant will help countries adjust to the sudden tariff revenue loss as a result of the implementation of the agreement.
Oramah said the bank will also provide aid for the work being done by the African Regional Standards Organisation and the AU in implementing the agreement.
READ ALSO: Buhari signs Africa Free Trade Agreement
He also announced the launch of the Pan-African Payment and Settlement System (PAPSS).
“We launched the Africa-wide digital payment infrastructure, PAPSS, which was developed in collaboration with the African Union,” he said.
“It is a platform that will domesticate intra-regional payments, save the continent more than 5 billion dollars in payment transaction costs per annum.
“It will also help to formalise a significant proportion of the estimated $50 billion of informal intra-African trade, and above all, contribute to boosting intra-African trade.
“Our goal is to reduce, significantly, the foreign currency content of intra-African trade payments.
“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.
“Making cross-border payments easier, cheaper and safer is an obvious critical step in creating an Africa we want.”
Oramah said that making it possible for Africans to pay for intra-regional trade in their local currencies will aid in the development of African economies.
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