The African Import-Export Bank (Afreximbank) and the East African Business Council (EABC) have recently signed an agreement to facilitate access to regional and continental markets for East African businesses, particularly small and medium-sized enterprises (SMEs). The agreement was signed in Nairobi, Kenya, on the sidelines of the first East African CEOs and Investment Forum. This partnership aims to leverage the Africa Trade Gateway (ATG) platform to connect EABC's network of businesses to Afreximbank's services.
The partnership is expected to enable East African businesses to tap into the East African Community (EAC) market, which represents approximately 300 million consumers, as well as the opportunities offered by the African Continental Free Trade Area (AfCFTA), with a potential market of over 1.3 billion people. By integrating with the ATG platform, EABC's member businesses will be able to identify verified buyers and suppliers, access trade information, and obtain financing and payment solutions.
The Africa Trade Gateway platform was launched in June 2023 and is one of Afreximbank's main digital initiatives to support African trade. The platform provides a range of services, including trade finance, payments, compliance, logistics, and economic information, in a single digital environment. It is currently present in over 45 African countries, connecting 45 trade support institutions, 110 commercial banks, and nearly 25,000 verified businesses.
According to Haytham El Maayergi, Executive Vice President of Afreximbank's Global Trade Bank, the development of trade relies on the ability of businesses to establish reliable commercial relationships. The ATG platform was designed to bring African businesses closer to buyers, suppliers, banks, and other actors essential to completing commercial transactions. The partnership with EABC is expected to enable East African businesses to access new markets with greater confidence and security.
Ahmed Farah, Director-General of EABC, noted that his organization is already supporting businesses in the region in understanding the opportunities offered by the AfCFTA, particularly in terms of rules of origin, tariffs, export procedures, and market access. The integration with ATG will complement this support by providing commercial matchmaking tools and financing solutions to accelerate trade between African countries.
The partnership between Afreximbank and EABC aims to address several obstacles that still hinder intra-African trade, including lack of market knowledge, limited access to reliable information on partners, difficulties in accessing financing, and complex cross-border transactions. By leveraging the ATG platform, East African businesses are expected to overcome these challenges and tap into new markets.
The collaboration between Afreximbank and EABC reflects the growing momentum to strengthen the digital infrastructure necessary for the growth of intra-African trade and to enable businesses on the continent, particularly SMEs, to access markets beyond their national borders more easily. The opportunities identified through this ecosystem are estimated to be around $4.5 billion and cover various sectors, including raw materials, minerals, oil and gas, consumer goods, and manufactured products.
Key points
- The partnership between Afreximbank and EABC aims to facilitate access to regional and continental markets for East African businesses through the Africa Trade Gateway platform.
