Afreximbank emphasizes compliance for enhanced African trade

Dr. George Elombi, Executive Vice President of Corporate Governance and Legal Services at the African Export-Import Bank (Afreximbank), delivered a keynote address at the 8th Afreximbank Compliance Forum, highlighting the critical role of compliance in facilitating trade and promoting economic growth in Africa.

“Intra-African trade remains a small fraction of global trade, despite the implementation of the African Continental Free Trade Area (AfCFTA),” Dr. Elombi stated.

According to the Economic Commission for Africa (ECA), the African share of global trade remained at less than 3 percent,driven largely by merchandise trade. This indicates that African countries continue to trade more with the rest of the world than among themselves.

Intra-African trade as a share of global trade declined from 14.5 percent in 2021 to 13.7 percent in 2022, while intra-African exports and imports also decreased during the same period.

The United Nations Conference on Trade and Development (UNCTAD) reported that trade growth in Sub-Saharan Africa lagged behind the rest of the world in the first quarter of 2024, with exports growing by only 0.5 percent compared to the global average of 1 percent.

“To unlock the full potential of the AfCFTA, we must address the challenges hindering trade, such as infrastructure deficits, limited productive capacity, and trade frictions,” according to Dr. Elombi.

He emphasized the need for harmonised regulations, standardised trade processes, and the use of digital solutions to streamline operations and reduce compliance risks.

“By strengthening compliance frameworks and fostering regional cooperation, Africa can create a more favorable environment for trade and investment,” Dr. Elombi asserted.

Afreximbank has been actively working to support the AfCFTA and promote regional integration. The bank has launched several initiatives, including the Intra-African Trade Fair (IATF), Africa Quality Assurance Centers, and the Africa Trade Gateway (ATG), to facilitate trade and investment.

Dr. Elombi highlighted the importance of addressing compliance risks, such as money laundering and tax evasion, to ensure the integrity of the African financial system. “Technology can play a crucial role in managing compliance risks and improving efficiency,” he added.

Afreximbank’s commitment to promoting trade and compliance is evident in its support for the AfCFTA and its ongoing efforts to address the challenges faced by African businesses. By strengthening compliance frameworks and fostering regional cooperation, Africa can unlock its full potential and increase its share of the global