The African Export-Import Bank (Afreximbank) has signed a Memorandum of Understanding (MoU) with the World Trade Organization (WTO) to enhance their collaborative efforts in promoting global trade by leveraging Africa’s unique resource endowment.
The MoU establishes a framework for harmonizing and coordinating trade development activities on the continent.
Collaborative Efforts in the Cotton Industry
Afreximbank and the WTO are part of an inter-agency partnership aimed at transformative change in Africa’s Cotton-4 plus (C4+) countries—Benin, Burkina Faso, Chad, and Mali, with Côte d’Ivoire as an observer. This agreement will enable both organizations to expand their support for the cotton sector beyond the C4+ countries. Their joint efforts will focus on developing local and regional cotton value chains in Africa and integrating them into the global market.
Broader Areas of Collaboration
The MoU also covers collaboration on trade finance, addressing non-tariff barriers to trade, the digital economy, capacity building, fisheries subsidies, the sports and creative economies, and trade within the context of the African Continental Free Trade Agreement (AfCFTA).
Statements from Leaders
Speaking at the MoU signing ceremony, Prof. Benedict Oramah, President and Chairman of the Board of Directors of Afreximbank, highlighted the significance of the partnership:
“The WTO Secretariat is a natural partner to Afreximbank given our shared mandate of promoting trade and trade-related activities. We are already working with the Secretariat on FIFA’s C4+ Cotton Initiative, for which we have committed financing for project preparation for cotton transformation projects in Africa. Formalizing our relationship today signifies that we can go beyond our present collaboration to include other equally impactful interventions across key economic sectors in Africa.”
He also mentioned the Bank’s recent initiatives:
“The Bank recently signed a Charter with Confédération Africaine de Football (CAF) and the Rebranding Africa Forum (RAF) to build a robust sports economy, which will include commercializing and monetizing African-made sports apparel and athleisure wear. This is yet another undertaking that will benefit from this MoU with the WTO Secretariat.”
H.E. Dr. Ngozi Okonjo-Iweala, Director-General of the WTO Secretariat, expressed her optimism:
“The signing of this MoU is timely as it reflects some of the key priorities of many of our Members. I am particularly pleased to see that it will support Members’ efforts in Agriculture and Food Security, advance efforts to address harmful fisheries subsidies, and promote cooperation on Trade Finance. I am especially pleased that Afreximbank has committed to explore the opening of a finance window that would assist the C-4 plus countries on their journey to scale value addition on the continent. I look forward to seeing real, on-the-ground results from this partnership.”
Impact on the Cotton Industry
The C4+ countries have historically exported raw cotton for processing outside the continent. Developing local industries to transform cotton into textiles could potentially create 500,000 jobs in West Africa. With proper harnessing, it is expected that within the next 10 years, the C4+ countries could process up to 25% of their cotton crops. This undertaking requires approximately US$ 5 billion in investment in production facilities and worker training, necessitating capacity building, access to finance, and improved infrastructure.
This MoU marks a significant step towards enhancing Africa’s trade capabilities and developing key industries, promising a transformative impact on the continent’s economy and its people.
