Afreximbank is to set aside an amount of $250 million as seed funding to support deals and initiatives of the African Sub-Sovereign Governments Network.
Launched yesterday on the sidelines of the ongoing Intra-African Trade Fair being held in Durban, South Africa, the Network is expected to serve as a platform to promote socio-economic cooperation among Africa Sub-National Governments within a continental framework.
Prof Benedict Oramah, President and Chairman of the Board of Directors, Afreximbank speaking at the launch here on Thursday, said, given the differences in levels of development and industrial and technological advancements, members would benefit from the exchange of experiences and knowledge.
“It can also be a platform to promote technology exchange and foster cross investments that take advantage of market opportunities, resource endowments and even relative geographic proximity that will be given meaning by borderless Africa that the African Continental Free Trade Area
(AfCFT) will ultimately engender,” he said.
He said “We will be willing to consider technical assistance and provide project preparation facility, guarantees, trade and project finance supports. Our Trade Intelligence solutions can support market access studies.”
Professor Oramah said the creation of the Network was another crucial step towards accelerating continental integration and using it as a platform for pursuing the African continent’s joint development aspirations.
He said members of the Network could work together to influence regional or continental trade and economic policies and programmes, particularly those that directly impact their economies.
“Such lobbying or advocacy initiatives will include influencing the formulation, adoption, and implementation of industrial and general economic policies as well as expected outcomes,” he said.
The Network he said, could promote cross-border investments by acting as a platform for deepening knowledge about their respective environments, enabling the introduction of specialised Document Classification: Confidentialfinancial products that could mitigate risks and encourage investments across their respective geographies.
Mr SihleZikalala, Premier, Kwazulu-Natal said the Network would create platform to facilitate business exchanges to promote trade and investments among African sub-sovereigns.
“There is a consensus in the world that Africa is the new growth frontier. The potential for growth is in municipal wards, local municipalities, district municipalities, provinces or states, and indeed at country level,” he said.
Dr MisheckMutize, Head of Credit Risk Research, African Peer Review Mechanism (APRM) a speech read for lauded the launch of the Network adding that it would help in the development of African economies.
He said the promotion of trade would address the risk of over reliance on primary commodities exports.
Dr said it would also tackle the risks of reliance on global supply chain.
FROM DAVID ADADEVOH, DURBAN, SOUTH AFRICA
