A journey to prosperity: How Africa is expanding its global trading potential
Africa has risen through the ranks to become an essential partner for business, trade, and investment worldwide. But how did the continent change its course to allow the free movement of people and capital?
The guiding principles
Since its establishment in 1993, Africa’s first export-import bank, Afreximbank, has been spearheading the continent’s socioeconomic progress with the aim of building prosperity for Africans. This means making a sustained improvement in their lives, from their monetary status to their health, wellbeing, and relationships.
Global players celebrated the bank’s journey and continued agenda at the Afreximbank Annual Meeting (AAM) in Accra, Ghana in June 2023. During the event, the President of Afreximbank, Dr. Benedict Okey Oramah, revealed the secret to its success—accrediting it to the guiding principles of vision, connection, and innovation.
As Naa Akwetey, Senior Vice President at the African scaleup mPharma, explains, “Based on how quickly our world is changing and the technological advancements that we've seen, it's almost cowardly to say that anything is impossible.” And it is this bravery that has enabled Afreximbank to advance its mission over the past 30 years, making prosperity accessible to everyone in Africa.
Vision is the catalyst
Every idea begins with a vision for creating a better world. It is seeing that vision through that is a true marker of perseverance and resilience. Using its credentials as a trade finance bank, Afreximbank is delivering on its vision to expand and diversify trade in Africa. It is acting as an intermediary between where the continent is and where it needs to go.
According to Rosa Whitaker, President and CEO of The Whitaker Group investment firm and an African trade negotiator, “The greatest investment that Afreximbank has made is in regional integration. The African Continental Free Trade Agreement (AfCFTA) would not be anywhere near as far as it is today without the support of the bank.”
“The greatest investment that Afreximbank has made is in regional integration. The African Continental Free Trade Agreement (AfCFTA) would not be anywhere near as far as it is today without the support of the bank.”
Rosa Whitaker President and CEO of The Whitaker Group investment firm
To date, Afreximbank has provided $10 million as a seed grant to the AfCFTA Base Fund and committed a further $1 billion to the recent Adjustment Fund. Forecasts show that, with continued investment and collaboration like this, the AfCFTA could boost intra-Africa trade by about 33% and cut the continent’s trade deficit by as much as 51%.
Connection is the binding agent
As one of several partners working to move the AfCFTA forward and eliminate the barriers to trade in Africa, Afreximbank understands the power of connection in motivating change. This is even more apparent through its growing network of international governments, investors, and organizations, and its work in positioning Africa as a core trading and business partner.
“No man, woman, or institution is an island.”
Rosa Whitaker President and CEO of The Whitaker Group investment firm
Afreximbank recently announced the opening of its first Caribbean office in Barbados. With investment between Africa and the Caribbean presenting great potential for development, this strategic partnership will expand Africa-Caribbean trade, investment relations, and trade-enabling infrastructure.
Its Caribbean office is just one of the many ways Afreximbank is strengthening ties between Africa and its diaspora—helping to shape a better future for its people, as a result. “No man, woman, or institution is an island,” says Whitaker. We must bring multiple minds together if we are to ensure prosperity for Africans, everywhere.
“We encourage people to innovate in terms of the technology we use, but also in the way we do things. [It is] the essence of the bank.”
Dr. Benedict Okey Oramah President of Afreximbank
Innovation is the legacy
For three decades, Afreximbank has been nurturing an environment for innovation to thrive. This commitment has enabled the bank to continuously reassess and redesign its service offering. Ultimately, with the goal of improving Africa’s financial ecosystem, trading prospects, and the livelihoods of its people.
“One of our values is to use ideas we like,” explains Dr. Oramah. “We encourage people to innovate in terms of the technology we use, but also in the way we do things. [It is] the essence of the bank.” At the start of 2022, it launched the Pan-African Payment and Settlement System (PAPSS) to facilitate Intra-African trade with payments made in African currencies.
“It is early into its commercial operations, but what that does upfront is save the continent $5 billion annually in charges for digital transfers,” continues Dr. Oramah. “It opens the African market because it domesticates African payments.” If you have somebody in Ghana trying to buy something in Malawi, PAPPS enables a seamless transaction.
Afreximbank has successfully created a trading system that enables capital to flow into Africa at speed and scale, where it had previously faltered.
And with more financial access comes more opportunities—largely in the growth and development of the continent. There is now the capacity to advance its digital policy, develop its public and private sectors, and invest in the future of African business leaders.
