Afreximbank Expands AfCFTA Partnership to Unlock $8 Billion for Intra-African Commerce
African Export-Import Bank (Afreximbank) President Benedict Oramah has highlighted the bank’s multi-billion-dollar partnership with the African Continental Free Trade Area (AfCFTA) Secretariat, describing it as a cornerstone for transforming Africa’s fragmented markets into a unified trading bloc.
Speaking during a farewell visit to the AfCFTA Secretariat in Accra, Oramah underscored that Afreximbank’s early financial backing was pivotal in getting the Secretariat fully operational, including funding negotiations of critical protocols and seconding experts to provide technical assistance.
The partnership has since evolved into practical interventions to break down barriers to trade. Central to this effort is Afreximbank’s Trade Facilitation Programme (AFTRAF), which has already onboarded over 500 African commercial banks and granted more than $5 billion in letters of credit confirmations. The goal is to reach $8 billion in credit limits to support businesses trading across borders under the AfCFTA.
“One of Africa’s biggest obstacles is its 42 different currencies, which force traders from Nairobi to Accra to settle in dollars or euros, costing the continent more than $5 billion annually,” Oramah said. To address this, Afreximbank, working with the African Union and AfCFTA Secretariat, launched the Pan-African Payment and Settlement System (PAPSS), enabling cross-border payments in local African currencies.
The bank also partnered with the AfCFTA Secretariat to institutionalize the Intra-African Trade Fair (IATF), now regarded as “the AfCFTA marketplace.” Since inception, the biennial fair has generated over $160 billion in trade and investment deals and attracted more than 200,000 participants.
To help governments and businesses adapt to tariff cuts and regulatory changes under AfCFTA, Afreximbank co-created the AfCFTA Adjustment Fund. The fund comprises a Base Fund to cushion governments against tariff revenue losses, a Credit Fund to boost private sector competitiveness, and a General Fund for infrastructure. Afreximbank seeded the facility with $1 billion in credit support and a $10 million grant to operationalize the Base Fund.
“From securing the Secretariat’s foundation to powering intra-African trade with finance, payments systems, and investment platforms, this partnership is proof that Africa can finance its own integration,” Oramah said.
The initiatives reflect a deliberate strategy to anchor AfCFTA’s success on concrete financial instruments rather than political statements, offering a rare example of coordination between a continental trade policy body and a pan-African financial institutions.
