Oramah's new book foresees intra-African trade doubling in decade

Afreximbank President Benedict Oramah (center). His new book the “Foundations and Evolutions of Structured Trade Finance” argues that implementation of AfCFTA should boost regional commerce from its current 15-17 per cent share of Africa's total trade. [Courtesy]

Intra-African trade could double within a decade as continental free trade reforms take hold, African Export-Import Bank (Afreximbank) President Benedict Oramah projected on Thursday while launching the second edition of his trade finance book.

The updated “Foundations and Evolutions of Structured Trade Finance” argues that implementation of the African Continental Free Trade Agreement (AfCFTA) should boost regional commerce from its current 15-17 per cent share of Africa's total trade. The prediction comes as the Cairo-based lender reports South-South trade now accounts for 68 per cent of Africa's commerce, up from just 23 per cent in 1995. 

"Where traditional models revolved around OECD risk buffers, we're now architecting solutions for African factories trading with African buyers," Oramah told delegates at the Abuja launch event. His 350-page guide details adapted financing structures for manufacturing supply chains and emerging commodity producers. 

The original 1990s-era edition focused on North-South commodity flows, reflecting an era when 70 per cent of African trade involved advanced economies. The new volume incorporates case studies from Afreximbank's recent $7 billion financing of intra-African trade deals and $5 billion energy lending program. 

Trade analysts note the update comes as 37 of 54 African nations have ratified AfCFTA, with the pact's payment-and-settlement system processing $12 billion in transactions since 2022. The trade finance guide is being distributed to central banks and private lenders across member states.