Intra-Africa trade is crucial to growth

8/28/2018 9:15:41 AM

African countries should boost trade on the continent, as it is crucial for growth of economies. Official statistics put intra-African trade at a mere 13 percent of the continent’s total trade.

Experts say that higher volumes of intra-African trade will expose firms to bigger markets, new opportunities and a larger pool of capital including human capital.

“One of the biggest constraints in intra-Africa trade is the lack of trade information,” Benedict Oramah President of the African Export-Import Bank has said, according to a report by eNCA. “Africans do not know what’s happening around Africa. African businessmen know more about what’s happening in Europe or Asia, then what’s happening across the board.”

Oramah made his remarks at the signing ceremony of a memorandum of understanding for a $1-billion (R13-billion) financing programme. Under the agreement between the African Export-Import Bank and the Export Credit Insurance Corporation of South Africa, the funds will be used to promote and expand trade and investment between South Africa and the rest of Africa. The initiative will also support businesses through market-information initiatives.

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