Secretary General, African Continental Free Trade Area (AfCFTA) Wamkele Mene has said that African countries are losing $5 billion annually as costs of currency convertibility.
Besides, Mene made it known that AfCFTA, in collaboration with Afreximbank announced plans to roll out $10 billion adjustment fund for countries that may suffer revenue loss arising from elimination of tariff on goods produced in the continent.
Speaking in a press briefing at the ongoing Intra- African Trade Fair in Durban, South Africa yesterday, Mene said AfCFTA is working closely with Afreximbank to establish a Pan-African Payment and Settlement System (PAPSS), which will enable Africans to transact in real-time on a digital platform with entities in other parts of the continent using their local currency to ensure successful implementation of the trade pact.
He explained that Afreximbank is providing liquidity worth over $1 billion for the settlement as well as establishing the technology, while AfCFTA is providing the legal framework.
“This is the very first time we have a single set of rules for trade and investment. So we need to leverage on this single instrument to make sure that we maximize the benefit,” Mene said.
On.the tariff adjustment fund, he said the fund would provide direct interventions for various sectors, especially in the areas of staff retraining, machinery processing, procurement of latest technology among others.
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