The African Export-Import Bank (Afreximbank) has launched a new initiative allowing African contractors to capitalise on various infrastructure investments
The new Intra-African Engineering, Procurement and Construction Contract Promotion Programme was launched by Benedict Oramah, president and chairman of the board of directors of Afreximbank and Rania Al-Mashat, minister of International Cooperation of Egypt during the Presidential Summit of the Intra-African Trade Fair 2023 (IATF2023).
The programme will support the implementation of the African Continental Free Trade Area (AfCFTA), helping African companies to successfully bid and execute contracts in the continent. This will be achieved through building, twinning, market access opportunities, financing, guarantees and technology solutions.
Oramah said, “The EPC initiative will help African contractors to participate in the US$60bn annual infrastructure investments within Africa, unlike the current practice where most of the contracts go to non-African entities.”
Al-Mashat, added, “It enhances the participation of African companies in infrastructure projects, provides more investment opportunities and facilitates the exchange of information in order to expand partnerships and twinning agreements to drive growth in the engineering, construction and procurement sector.”
The Minister recommended promoting transparent communication between governments and the private sector in order to bridge information gaps and skills deficits. If successfully pursued, the platform could become an effective solution to tackle lack of funding, insufficient information and the skills gap holding the continent back. Addressing these is crucial to tackling its infrastructure funding gap, currently estimated at US$170bn annually.