Economic growth & sustainable development key to growing regional trade

The implementation of the Africa Continental Free Trade Area (AfCFTA) continues to confront challenges despite efforts to promote regional trade. CNBC Africa's Aby Agina sat down with Ayman Elzoghby, Director & Global Head, Trade, Investment & Corporate Finance at African Export-Import Bank, to discuss the key strategies and initiatives aimed at fostering economic growth and sustainable development in the region. Elzoghby highlighted the significant infrastructure projects underway in East Africa, emphasizing the efforts of countries like Tanzania, Kenya, and Djibouti in driving regional integration. African Export-Import Bank has been actively supporting these initiatives by providing financial assistance, such as financing a marine jetty in Djibouti and participating in a railway project in Tanzania that connects neighboring countries. Additionally, the bank is leading an agriculture initiative to promote agricultural integration and agro-processing in the region. By leveraging arable lands and industrial parks, the goal is to facilitate trade within the region and expand exports to other African countries and globally. Recognizing the importance of indigenous financial institutions, Elzoghby underscored the collaboration with African banks in East Africa to strengthen their presence and enhance their capacity to support development projects and regional integration. By empowering these institutions, the aim is to leverage local resources to drive economic growth and infrastructure development in collaboration with the AfCFTA. When discussing the challenges hindering intra-African trade, Elzoghby emphasized the critical need for market information to bridge the gap between countries and facilitate trade agreements. African Export-Import Bank is dedicated to addressing this obstacle by providing financial solutions to capitalize on emerging trade opportunities. While intra-African trade currently stands at a modest 17%, the bank is committed to driving transformation in this area by promoting dialogue, fostering partnerships, and advancing policy reforms to boost regional trade. Looking ahead, Elzoghby shared insights on the future of the Intra-African Trade Fair (IATF), a key initiative to enhance trade relations and investment prospects across the continent. Since its inception in 2018, the IATF has served as a platform for stakeholders to engage in trade negotiations, policy discussions, and investment talks. The upcoming IATF 2025 in Algeria aims to build on the success of previous editions, with a focus on driving foreign direct investment and expanding intra-African trade deals. In conclusion, Elzoghby reaffirmed the bank's commitment to promoting intra-African trade and fostering economic cooperation in East Africa and beyond. With a keen focus on infrastructure investment, market information dissemination, and policy advocacy, African Export-Import Bank is dedicated to realizing the potential of regional trade and sustainable development in the region.