A continental payment and settlement platform for African businesses
will become operational in the first quarter of 2019, President, African
Export-Import Bank (AFREXIMBANK) announced in Abuja on Monday.
will become operational in the first quarter of 2019, President, African
Export-Import Bank (AFREXIMBANK) announced in Abuja on Monday.
Benedict Oramah said the payment platform was one of the bank’s
initiatives to eliminate some of the major constraints to intra-African
trade.
initiatives to eliminate some of the major constraints to intra-African
trade.
He was speaking at a panel discussion on “Strategy to deepen
Nigeria-Africa trade” hosted by AFREXIMBANK as part of activities to
promote the maiden intra-Africa Trade Fair (IATF) scheduled for Cairo,
Egypt next December.
Nigeria-Africa trade” hosted by AFREXIMBANK as part of activities to
promote the maiden intra-Africa Trade Fair (IATF) scheduled for Cairo,
Egypt next December.
“The issue of multiple currencies is one of the constraints to
intra-African trade. To eliminate the problem, the Bank resolved that
before the single currency system everybody is hoping for, a way must be
found where African currencies could be convertible within the
geography of the continent
intra-African trade. To eliminate the problem, the Bank resolved that
before the single currency system everybody is hoping for, a way must be
found where African currencies could be convertible within the
geography of the continent
“The bank has set up a pan-African payment and settlement platform to
reduce the foreign currency content of conducting intra-African trade.
It is intended to make payments under intra-African trade possible in
local currencies of all African countries.
reduce the foreign currency content of conducting intra-African trade.
It is intended to make payments under intra-African trade possible in
local currencies of all African countries.
“If a Nigerian wants to buy goods from Ghana, the Nigerian will pay
for the goods in Naira, while the Ghanaian supplier will get paid in the
Ghanaian Cedi. AFREXIMBANK will do the clearing. Only those in debit
during the clearing period that would need to pay in dollars,” he said.
for the goods in Naira, while the Ghanaian supplier will get paid in the
Ghanaian Cedi. AFREXIMBANK will do the clearing. Only those in debit
during the clearing period that would need to pay in dollars,” he said.
This arrangement, Mr Oramah said, would clear multiple buyers within
the 55 countries in the continent, since the Bank believed once
opportunity for payment in local African currencies was created, a
national saving currency would have been established before the planned
single currency system in Africa.
the 55 countries in the continent, since the Bank believed once
opportunity for payment in local African currencies was created, a
national saving currency would have been established before the planned
single currency system in Africa.
Preparatory to the take-off of the platform, he said all
consultations have been concluded with the relevant financial experts,
with the pilot of the project with the West Africa Monetary Zone in six
countries pending when the technology would be ready.
consultations have been concluded with the relevant financial experts,
with the pilot of the project with the West Africa Monetary Zone in six
countries pending when the technology would be ready.
In his contribution, the Commissioner for Trade and Industry, African
Union, Albert Muchanga, said the African Heads of State and Government
last January opened the protocol on free movement of people, right of
establishment and right of residence for signature.
Union, Albert Muchanga, said the African Heads of State and Government
last January opened the protocol on free movement of people, right of
establishment and right of residence for signature.
He said the protocol, which has already received about 30 signatures
and one ratification, would help remove another big challenge to trade
in the continent.
and one ratification, would help remove another big challenge to trade
in the continent.
The commissioner said the protocol requires 15 ratifications to become operational.
“We are working towards a programme of Visa-free movement of Africans
across Africa as well as the involvement of African passports. Some
African countries, namely Nigeria, Rwanda and Kenya, have already taken
off with the issuance of Visa-on-arrival to African visitors,” he said.
across Africa as well as the involvement of African passports. Some
African countries, namely Nigeria, Rwanda and Kenya, have already taken
off with the issuance of Visa-on-arrival to African visitors,” he said.
Besides, Mr Muchanga said the launching of a single African air
transport market was in the pipeline, with private sector operators
expected to come up with Air Africa Airline that would fly Africa
routes.
transport market was in the pipeline, with private sector operators
expected to come up with Air Africa Airline that would fly Africa
routes.
Again, he said Africa Infrastructure Development Company would soon
be established to undertake massive infrastructure development across
Africa, in view of concerns that doing business would be difficult
without adequate infrastructure.
be established to undertake massive infrastructure development across
Africa, in view of concerns that doing business would be difficult
without adequate infrastructure.
The Director-General, Nigerian Export Promotion Council (NEPC), Segun
Awolowo, said Nigeria’s strategic plan for trade development were
included in the country’s Economic Recovery and Growth Plan to diversify
the economy and build the productive capacities of the various sectors.
Awolowo, said Nigeria’s strategic plan for trade development were
included in the country’s Economic Recovery and Growth Plan to diversify
the economy and build the productive capacities of the various sectors.
The strategies include those under the National Industrial Revolution
Plan, National Enterprise Development Programme and the Zero Oil Plan.
Plan, National Enterprise Development Programme and the Zero Oil Plan.
Mr Awolowo, who assured that Nigeria would participate fully in the
IATF event in Cairo, said the country was already realising huge value
implementing these strategies by way of exportable goods like cement,
plastics, herbs, fashion and services.
IATF event in Cairo, said the country was already realising huge value
implementing these strategies by way of exportable goods like cement,
plastics, herbs, fashion and services.
“The IATF offers a platform for Nigeria to promote trade engagement
on a really broad scale in the African region. The trade fair will
create opportunity for Africans to meet and know themselves, apart from
trade opportunities available for them.
on a really broad scale in the African region. The trade fair will
create opportunity for Africans to meet and know themselves, apart from
trade opportunities available for them.
“Its an opportunity for information to flow from commodity producing
countries to the markets to enhance intra-African investment
opportunities,” he said.
countries to the markets to enhance intra-African investment
opportunities,” he said.
