AfCFTA and Afreximbank signed an Agreement relating to the management of the Base Fund of the AfCFTA Adjustment Fund for the development of African economies
The Secretariat of the African Continental Free Trade Area (AfCFTA) and the African Export-Import Bank signed an agreement on February 9 in Cairo (Egypt) to manage the US$10 billion AfCFTA Adjustment Fund (ADF) over the next 5-10 years, which will consist of a base fund, a general fund and a credit fund.
The base fund will help African countries cope with the loss of revenue from import tariffs and help the private sector participate effectively in the new trading environment created by the AfCFTA. It will consist of contributions from States parties, grants and technical assistance funds to address the tariff revenue losses as tariffs are progressively eliminated.
The base fund, according to the two continental institutions, will also support countries in implementing various provisions of the AfCFTA agreement, its protocols and annexes, while the general fund will mobilize concessional funding.
The credit fund will mobilize commercial funding to support both the public and private sectors, enabling them to adjust and take advantage of the opportunities created by the AfCFTA.
The general fund and credit fund will be very soon launching to address the needs of the private sector, including small and medium enterprises, women and youth.Source