The Secretary General of the African Continental Free Trade Area (AfCFTA), Wamkele Mene has revealed that the AfCFTA Adjustment Fund has mobilised over $1 billion.

Following the mandate by the African Union (AU) Summit of Heads of State and Government and the AfCFTA Council of Ministers responsible for Trade, Afreximbank and the AfCFTA Secretariat were mandated to establish and operationalise the AfCFTA Adjustment Fund through a General Partnership – the AfCFTA Adjustment Fund Corporation – with operations of the Fund domiciled in Rwanda.

The Adjustment Fund will support countries and private entities through financing, technical assistance, grants and compensation funding in their transition to the new trading regime.

The fund will also help mitigate any negative impacts that may arise during this process.

By providing targeted support, the Fund aims to ensure that no country is left behind and that the benefits of the AfCFTA are shared equitably and in a sustained manner across the continent.

Speaking at AfCFTA Conference on Women in Trade held in Dar es Salaam – Tanzania, Wamkele Mene disclosed that “we have mobilised over $1 billion with the support of Afreximbank and we intend to mobilise $10 billion to ensure that the AfCFTA Adjustment Fund reaches millions and millions of Africans, particularly SMEs that wish to trade under the rules of the AfCFTA”.

According to the Secretary General, statistics indicate that 90% of all businesses in Africa are Small Medium Enterprises (SMEs). Close to 60% of those SMEs he indicates are owned by women. These SMEs account for close to 80% of job creation and contribute over 40% to Africa’s combined GDP.

“Therefore, with the aforementioned, it is important to know that with the implementation of the Protocol on Women and Youth in trade positions, the African continent wishes to position the women-owned businesses to benefit,” Mr Wamkele added.

In view of this, the AfCFTA Secretary General called on all stakeholders at the conference to do more in the area of trade finance for SMEs.

Mr Wamkele added that efforts are underway to address the issue of financing for SMEs through close collaboration with the private sector.

“We signed an MoU with UBA, close to $6 billion commitment, to mobilise financial services in support of SMEs for those that are operating within the market of the AfCFTA."

According to him, his outfit is also engaged in advisory services for Small and Medium Enterprises operated by women and young people, in partnership with International Trade Centre (ITC).

This, he explained, is to ensure that the vast African market of 1.3 billion people, is a market that SMEs can take advantage of.

The AfCFTA Conference on Women in Trade, according to the Secretary General, presents a very unique opportunity for young people, for women-owned businesses, policy makers, developing partners, financial institutions and other stakeholders to take concrete steps forward as we seek to eliminate barriers to intra-Africa trade.