The Intra-African Trade Fair (IATF) is a biennial event of the African Export-Import Bank (Afreximbank) in collaboration with the African Union (AU) and the AfCFTA Secretariat. This year’s edition, IATF2023, took place in Cairo, Egypt last month. TOBI AWODIPE spoke with the Executive Vice-President of Intra-African Trade Bank at Afreximbank, Kanayo Awani, on the takeaways of this year’s edition.
Give us some insight into this year’s IATF event. What stood out most for you?
In terms of participation, both virtual and physical, this year’s fair attracted 28,282 attendees. We initially announced 1,615 exhibitors, but following the audit, the final number was 1,939, exceeding our target of 1,600. Participating countries, including exhibitors, delegate visitors, and speakers, totalled 130, significantly surpassing our target of 75.
Notably, 45 African countries were represented through pavilions or corporate entities. Of these, 42 were dedicated African country pavilions. Additionally, 16 non-African countries were represented, giving a total of 61 countries participating. The total value of trade and investment deals reached $43.7 billion, exceeding our initial estimates. This achievement is a testament to the success of IATF 2023, as we surpassed the majority of our self-set targets. While visitor attendance slightly fell short of our goal, the overall outcome was undoubtedly successful.
You mentioned that trade and investment deals were valued at $43.7 billion. Could you highlight some of the deals and their potential impact?
To start, I would like to start with the framework agreement signed for export agriculture in the context of food security. This agreement, valued at approximately $2 billion, involves Zimbabwe, Malawi, Chad, Egypt and Afreximbank. Its objective is to address Africa’s food insecurity challenges, which include a 20 per cent hunger rate. The agreement will see countries like Zimbabwe and Malawi becoming agricultural hubs under a contract agriculture scheme, supporting countries like Egypt and Chad. Another noteworthy deal is the sub-sovereign initiative, which focuses on a network of autonomous sub-national governments across Africa. Representatives from various countries like Nigeria, South Africa, Kenya, Egypt and others participated in this initiative. One key objective is to explore direct financing for these sub-sovereign entities. Consequently, a framework agreement was signed to support specific sub-sovereigns, particularly those in Nigeria, for an amount of 500 billion Naira, approximately $500 million). The total package for sub-sovereign financing under this initiative is $2 billion. Finally, I would like to mention our industrialisation interventions, specifically the facility signed with Arise Integrated Platform for approximately $1 billion. This facility aims to support the development of industrial parks in various countries across Africa.
How does the bank intend to monitor the progress of the projects?
Yes, we monitor and track these deals to ensure their successful completion. Every closed deal, and there have been approximately 426 announced today alone, is assigned to an officer. This officer, regardless of the deal type, financing, non-financing, trade, or investment, monitors its progress and sees it through to the end. Even deals involving the bank’s financing and those outside the bank, are subject to our rigorous monitoring process. We report on this progress monthly. In terms of our governance structures, we facilitated $32.4 billion worth of deals during IATF2018 in Egypt and closed 75 per cent of them. Our target for IATF 2023 remains the same across the board, to close at least 70 per cent of all deals. These deals are also being tracked meticulously, and we will use this data for promotional activities and in preparation for IATF 2025.
How significant is the IATF to the sub-Saharan Africa region in increasing access to financing?
While the trade fair is primarily a platform for connecting buyers and sellers, we acknowledge that the contracts negotiated, purchased and consummated require some form of financing, be it direct funding, de-risking instruments, guarantees, or even factoring. As a bank, we invite GFI’s, commercial banks, non-bank financial institutions, insurance companies, guarantee providers, factoring companies, ECAs, and Eximbanks to participate in the trade fair, aiming to expand access to finance and ensure that deals, particularly those related to intra-African trade, are financed. In 2023, over 500 such institutions were invited to participate, with some directly involved in finalised deals. The trade fair goes beyond simply boosting trade volume; it’s a crucial platform for banks to expand access to finance. We’re pleased to see banks recognising this as an opportunity for business development and deal acquisition. Additionally, we announced the Buyer Program, specifically designed to expose buyers to financial institutions and leverage their participation to support our financing interventions. This program attracts and sponsors buyers, redirecting those previously looking outside the continent to African-made goods. Notably, approximately $2 billion of the announced deals or 157 of the total, originated from this programme. The Buyer Program has witnessed significant success, with several resulting deals directed to us for financing. For example, a central firm previously sourcing polyvinyl chloride (vinyl) from China has identified suppliers in Egypt, and the transaction is now under consideration for financing. As a leader in syndications, ranked number one by Bloomberg on the continent, we leverage our deal acquisition capabilities to bring other financial institutions on board, collectively implementing these transactions.
What makes this edition unique or different from previous ones?
We’ve not only built upon the successes of previous editions, but we’ve also remained dynamic, drawing inspiration from current continental events, showcasing initiatives that require support and exposure and attracting investment. One key aspect of our approach is raising the stakes, particularly in terms of our KPIs. We also consistently introduce new elements and verticals. For instance, we’ve incorporated a gastronomy and culinary arts showcase. This goes beyond mere exhibition; the trade fair serves as a platform for meaningful intervention. We’ve invited chefs to showcase Africa’s culinary talents and explore ways to expose African gastronomy to the world. The “jollof rice wars” sparked engaging conversations and debates, particularly in Nigeria, Ghana, and Senegal. While Ghana won the competition this year, we’ve called for a rematch at IATF 2025. As mentioned earlier, we also have other pillars of interventions within the gastronomy sector. We also introduced freestyle hand football within the CANEX sports sub-vertical. This initiative aims to popularise freestyle hand football as part of our broader sports program. We’ve made it so that people will know the CANEX portfolio includes films, music, arts and crafts, sports, fashion, and now gastronomy. We’ve also actively promoted the Africa Buyers program, recognising the crucial role buyers’ play in creating a successful exhibition environment. This program fosters connections and facilitates business interactions.
I work in an organisation that supports me, supports women and boasts visionary leadership. My team, comprised of hard-working Africans, show up every day to fight for the economic future of our continent. It’s thanks to Afreximbank’s structure and the support of our board and shareholders that we have the agility and nimbleness to execute our bold and courageous strategies. Every day, we ask ourselves, “If not us, who? And if not now, when?” Personally, I key into that vision and contribute through hard work. The successful events we hold are a product of teamwork and dedication. As I often tell my colleagues, there are times when the only way forward is on my knees or on my feet. It’s the combination of hard work; tenacity, courage, and boldness, along with overcoming the occasional hesitation that allows us achieve our goals. We can sometimes be hesitant to step forward, but it’s important to raise our hands and be counted.
