Cairo, 04 May 2018: – Africa must urgently upgrade its maritime and logistic infrastructure in order to successfully promote the continent’s trade, especially intra-African trade, the African Export-Import Bank (Afreximbank), has said.
In an address at the Africa Ship-owners Summit in Seychelles on 23 April, Kanayo Awani, Managing Director of Afreximbank’s Intra-African Trade Initiative, speaking on behalf of Bank President Dr. Benedict Oramah, described weak maritime and logistic infrastructure as being particularly harmful to African trade, noting that the continent currently had the world’s highest transportation and transaction costs.
Ms. Awani pointed out that only a few of the African countries with access to the sea had established the right infrastructure for marine transport even though Marine transport accounted for 92 per cent of Africa’s external trade and 92 per cent of the continents imports were seaborne.
She said that Africa currently handled only six per cent of global seaborne traffic, out of which 50 per cent of the volume was handled by Egypt and South Africa.
Lamenting that most African countries did not have national vessels, Ms. Awani said that it was estimated that Kenya lost about $3 billion annually in money paid to foreign shipping lines.
She recommended that there should be incentives to encourage African businesses to support the development of local shipping lines and called for investment in national/domestic fleet through gradual and staggered vessel acquisition, terminal management, freight forwarding and logistics.
Opportunities also existed in inland waterways, cruise ship services, trans-shipment, container manufacturing and repairs, dry docking and other value addition services, such as sorting, arranging, packaging/re-packaging, cold storage and distribution, she added.
The Summit, organized by the African Ship-owners Association, also featured the presentation of an Honorary Captain’s Award to Dr. Oramah by the organisers for Afreximbank’s contribution in supporting the Blue Economy and the Maritime Sector in Africa. Ms. Awani accepted the award on behalf of the President.
Other Recipients were President Danny Faure of Seychelles and African Union Chairman Moussa Faki Mahamat.
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Media Contact: Obi Emekekwue (oemekekwue@afreximbank.com; Tel. +202-2456-4238)
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About Afreximbank: The African Export-Import Bank (Afreximbank) is the foremost pan-African multilateral financial institution devoted to financing and promoting intra- and extra-African trade. The Bank was established in October 1993 by African governments, African private and institutional investors, and non-African investors. Its two basic constitutive documents are the Establishment Agreement, which gives it the status of an international organization, and the Charter, which governs its corporate structure and operations. Since 1994, it has approved more than $51 billion in credit facilities for African businesses, including about $10.3 billion in 2016. Afreximbank had total assets of $11.7 billion as at 31 December 2016 and is rated BBB+ (GCR), Baa1 (Moody’s), and BBB- (Fitch). The Bank is headquartered in Cairo. For more information, visit: www.afreximbank.com