The estimated fund requirement under the Adjustment Funds is about US$ 8-10 billion. Afrexim bank’s subsidiary, the Fund for Export Development in Africa (FEDA), in collaboration with the AfCFTA Secretariat will manage the AfCFTA Adjustment Fund.
In view of the extensive collaborative work done with AfCFTA (African Continental Free Trade Agreement) Secretariat and the Africa Union Commission, Afreximbank has been appointed as the Fund Manager of the AfCFTA Adjustment Funds. Subsequently, the AfCFTA Council of Trade Ministers and the African Union Heads of State directed African Export-Import Bank to establish and operationalise the AfCFTA Adjustment Funds. Accordingly, Afreximbank has renewed its approval of a US$1 billion facility to operationalise the AfCTA Adjustment Funds.
The estimated fund requirement under the Adjustment Funds is about US$ 8-10 billion. Afrexim bank’s subsidiary, the Fund for Export Development in Africa (FEDA), in collaboration with the AfCFTA Secretariat will manage the AfCFTA Adjustment Fund.
An amount of US$10 million to seed the Base Fund of the AfCFTA Adjustment Funds has also been granted. The objective of the Base Fund is to mobilise grants against tariff revenue losses and to support AfCFTA State Parties to execute the various protocols under the AfCFTA.
The other Funds under the category are the General Fund, and the Credit Fund. The General Fund will be used to mobilise concessional funding. The purpose of the Credit Fund is to mobilise commercial funding to support the public and private sector including small and medium enterprises (SMEs), youth and women to adjust to the new trading environment arising from the AfCFTA.
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