YANDE SYAMPEYO, Johannesburg, South Africa
THE Africa Export-Import Bank has developed a strategy to promote intra-Africa trade through industrialisation to a tune of US$90 billion.
The strategy, dubbed ‘Impact 2021, Africa Transform’, aims to increase intra-Africa trade from US$170 billion in 2014 to more than US$250 billion.
Exim Bank senior manager Gainmore Zangmwe said the strategy will provide finance to African corporates on a revolving basis to address the challenge of market share and facilitate export development.
Mr Zangmwe said the strategy will also strengthen the bank’s leadership in trade finance and ensure the continent’s trade quarter marks 22 percent by 2021.
He said this here yesterday when he made a presentation on intra-Africa trade during the opening of the Southern African Development Community (SADC) Industralisation Week.
“Our strategy aims to provide finance of US$90 billion to African corporates and this will be done on a revolving basis. We are actually setting aside about US$25 billion of the amount to support the intra-Africa trade agenda,” Mr Zangmwe said.
And a study by the bank and the Commonwealth secretariat, among other stakeholders, has revealed that unavailability of market information is greatly disadvantaging intra-Africa trade.
Mr Zangmwe said while Australia is the main source of tonged leather, hides and skins for southern Africa, countries within the region such as Zambia are producing the products.
The report pins to the fact that while Zambia is exporting huge quantities of hides cheaply, South Africa is importing the products from Australia in low quantities.
“The report further shows that South Africa imported tonged leather from India at double the price at which Ethiopia exported such leather,” Mr Zangmwe said.
The report also revealed that Mauritius and Nigeria imported leather products from Italy and Belgium at a higher price than what South Africa and Botswana are exporting.