Chronicle Editor
Oliver Kazunga, Senior Business Reporter
AFREXIMBANK has signed an agreement for the management of the base fund of the African Continental Free Trade Area (AfCFTA) Adjustment Fund.
The agreement, which was signed recently between AfreximBank and AfCFTA would see countries on the continent and the private sector being supported so that they can effectively participate in the new trading environment that has been created as a result of AfCFTA operationalisation.
AfCFTA was operationalised on the 1st of January 2021.
In a statement, AfreximBank said the Adjustment Fund consists of a base fund, a General Fund and a Credit Fund.
“The fund (Adjustment Fund) will support African countries and the private sector to effectively participate in the new trading environment established under the AfCFTA.
“The agreement was signed by Professor Benedict Oramah (AfreximBank president and chairman) and AfCFTA secretary general Mr Wamkele Mene, in the presence of Mr. Aly Basha, the Minister Plenipotentiary (Trade) of the Arab Republic of Egypt as well as African bankers and captains of industry,” said the regional financier.
The base fund will consist of contributions from State parties, grants and technical assistance funds to address tariff revenue losses as tariffs are progressively eliminated.
It will also support countries to implement various provisions of the AfCFTA agreement, its protocols and annexes.
The General Fund will mobilise concessional funding, while the Credit Fund will mobilise commercial funding to support both the public and private sectors, enabling them to adjust and take advantage of the opportunities created by the AfCFTA.
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