Senior Technical Advisor and AfCFTA Coordinator at the Ministry of Trade and Industry (MoTI), Dr. Fareed Arthur, says his outfit is working with banks to set up specialized funds for private sector businesses that are seeking to explore the single continental market.
“Before the close of this year, we are hoping to meet with a cross-section of financial institutions to discuss the workability and potential of creating special purpose vehicles to support trade,” he says in an interview with Single African Market.
He adds: “It is something that is in the plan and we hope that it should be able to start negotiations now and continue into next year.”Dr. Arthur says the structured funding will be directed to the private sector where most traders do not have ready access to capital
“If our businesses need to go to Africa, then we’ll have to find a way of supporting them with finance. This is money for trading, investments and building cross-border value chains,” he claims. According to Dr. Arthur, the special funding vehicle is part of its programs to identify and support companies that have the potential to trade actively in the African Continental Free Trade Area (AfCFTA).
To this end, there have been engagements with public and private agencies and institutions that have something to do with exports.Dr. Arthur says he is impressed about the interest coming in from Ghana’s private sector businesses who are very upbeat about the single market
He shares: “The Ghanaian private sector is very eager about the AfCFTA; they are very enlightened about what’s happening outside, particularly on the West African corridor. They are also interested in other markets and so they’re always making enquiries which we think is a good sign.”Meanwhile, trading under the single continental market is gradually picking up as countries get their acts together to push the AfCFTA agenda.
In the western region of Africa alone, about eight countries including Nigeria, Ivory Coast, Sierra Leone, Gambia and Liberia have put in place various structures and also at the point where trading could be initiated, according to Dr. Arthur.
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