Trillion Investment Framework Presented at AfroChampions Boma
Trillion Investment Framework Presented at AfroChampions Boma
AfroChampions Initiative and African Union open consultations to elaborate a platform to support AfCFTA-enabling projects across Africa
Kigali, October 11, 2019 - The African Union, in partnership with the AfroChampions Initiative officially launched a Trillion Investment Framework to fully operationalize the African Continental Free Trade Area through private sector-driven investments across various sectors on the continent by the year 2030. The objective is to create a private sector led blended-finance vehicle for infrastructure and strategic projects investments on the continent, through leveraging development finance institutions, banks, credit institutions as well as sovereign and private funds. This major step would be supported by a set of monitoring and incentive mechanisms to ensure that projects are better prioritized, adequately funded - and deployed in a faster way.
Beyond the fund, the Framework is envisaged to serve as a broader instrument allowing for better coordination of public policies while promoting cross-border projects with high impact. In its current design, it comprises a matrix for determining the eligibility of AfCFTA certified programmes and projects, whilst at the same time setting up an independent monitoring and reporting mechanism based on an Africa-focused and AfCFTA-triggered benchmark framework.
The presentation of the Trillion Dollar Framework was made during the current Session of the Afro-Champions Boma being hosted in Kigali, Rwanda. The Session is dedicated towards the promotion of green industrialization, in view of the need to drive advocacy on sustainable exploitation of natural resources. Of interest is that Kigali also turns out to be where the AfCFTA was signed in March 2018. "AfCFTA is the largest and most ambitious development programmes to be marshalled by the continent. This requires equal resolve in its implementation. The Trillion Dollar Investment Framework has been designed against this background and will promote Public-Private Partnerships in the financing and implementation of the AfCFTA agreement, "said HE Albert Muchanga, Commissioner in Charge of Trade and Industry at the African Union Commission.
"With the Investment Framework designed by the AfroChampions Initiative, we would give ourselves the means for genuine economic cooperation to boost inclusive growth; the scheme will greatly intensify African trade, which represents only 17% of trade on the continent," said Paulo Gomes, former Executive Director at the World Bank and member of the AfroChampions Initiative’s Executive Committee.
“For over 30 years I have monitored and actively invested in the African market as head of multiple sovereign wealth funds in the Gulf Region. Though opportunities abound, the executional risk has hampered many great ideas. Thanks to AfroChampions' advocacy, the ‘Trillion Dollar Investment Framework’ could help to catalyse these investments for all stakeholders” also added Soud Ba’alawy, Founder of Dubai-based ENSPIRE fund.
A wide ranging round of consultations had now been opened with relevant stakeholders to refine and improve the proposed approaches. The African Union Commission, will, in line with the existing Memorandum of Understanding facilitate presentation of the Trillion Dollar Investment Framework for Africa to African Union Policy organs by the AfroChampions Initiative, starting with the inaugural meeting of the Council of Ministers of Trade of the African Continental Free Trade Area. In addition, the Department of Trade and Industry of the African Union Commission and the AfroChampions Initiative will organize a session dedicated to the project during the Africa Industrialization Week to be held in Addis Ababa, Ethiopia from 18-21 November, 2019.
About the AfroChampions Initiative
The AfroChampions Initiative is a public-private partnership designed to galvanize African resources and institutions to drive further Africa’s economic integration. The initiative supports the emergence and success of African corporate champions, which have a critical role in integrating African markets and accelerating the transformation of the continent. The initiative was founded by the advisory and research firm Konfidants, which manages the secretariat jointly with strategic advocacy firm Impulse Africa. The initiative is Co-Chaired by H.E. Thabo Mbeki, former President of South Africa and Mr. Aliko Dangote, President and CEO of Dangote Group. The initiative is headquartered in Accra, Ghana, and works with regional and global partners and governments, with the support of other corporate and institutional partners. The AfroChampions Initiatives has defined 4 pillars of activity, all aimed at supporting Africa’s economic integration, including
- Capacity building for the next generation of African executives;
- Policy-shaping for a successful implementation of the African continental free trade area;
- Creating a powerful group of AfroChampions companies able to speak with one voice and identify common areas of interest, within the AfroChampions Club;
- Driving investment into game-changing projects on the continent.
About the AfCFTA
The main objectives of the AfCFTA are to create a free trade area covering goods and services on the African continent, with free movement of persons and investments, and thus pave the way for deeper integration on the continent including the customs union and the single market. It will also expand intra-African trade through better harmonization and coordination of trade liberalization and facilitation across the RECs and across Africa in general. The AfCFTA is also expected to enhance competitiveness at the industry and enterprise level through exploitation of opportunities for scale production, continental market access and better reallocation of resources. Under the leadership of the AfCFTA Leader, Mr. Mahamadou Issoufou, President of the Republic of Niger, the AfCFTA agreement has been finalized by African Union Ministers for Trade on December 4, 2017 and signed by 44 African states on March 1, 2018 in Kigali under the aegis of the Rwandan Presidency of the African Union. It should be ratified by African Union member states throughout 2018, while discussions will continue on additional protocols and implementation processes until 2020.
About the African Union and its Department for Trade and Industry
The vision of the African Union is that of: “An integrated, prosperous and peaceful Africa, driven by its own citizens and representing a dynamic force in global arena.” To help achieving this vision on the economic front, the Department for Trade and industry, under the leadership of H.E. Commissioner Albert Muchanga, leads on matters relating to intra-African economic integration, and notably the AfCFTA negotiations in collaboration with other departments in the AUC.
For more information, please contact:
1. Anne-Elvire Esmel - Program Director, AfroChampions Initiative - email@example.com
Whatsapp: + 33 6 46 41 77 84
2. Ron Osman Omar - Senior Policy Advisor, Trade and Industry Department, African Union - OmarR@africa-union.org
For further information: Directorate of Information and Communication | African Union Commission I E-mail: DIC@africa-union.org I Website: www.au.int I Addis Ababa | Ethiopia
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