Africa’s export trade only accounts for 3% of world trade. In addition, Africa contributes little to global value chains and accounts for less than 1% of world value added manufacturing. In comparison to other parts of the world, the share of inter-African trade (approximately 18%) in total African trade remains relatively low. Growth in African trade very much depends on the capacity of African countries to promote entrepreneurship, strengthen provision capacities (including financial services), and create regional value chains. The existence of a well developed and stable financial sector is crucial for trade to flourish and for economic growth to be sustainable.
Yet Sub-Saharan Africa encounters major difficulties in developing access to affordable financing. In this context, the intervention of development banks to support trade, such as AFREXIMBANK, should foster its contribution to inclusive, sustainable and job-creating growth.
This credit line aims to support the diversification of trade, the promotion of the added value of African exports and the increase in Inter-African trade. The support for AFREXIMBANK’s activity meets the following objectives:
- Promote the competitiveness and diversification of African exports, via access to medium and long-term financing;
- Develop African exports by promoting the integration of local content;
- Support intra-African trade in order to promote the creation of value chains and regional trade integration.
This credit line should have a major leverage effect on private investments in Sub-Saharan Africa. By promoting African exports, this credit line also aims to support job creation on the continent. The investments promoted will be required to comply with international environmental and social standards.
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