Ai AfCFTA Investment Action Initiatives

Ai through The Ai Academy, helps investment and business leaders and policy makers to understand the evolution of climate investing in Africa, to enhance their performance, competitiveness and provide a fact base for decision-making at the continental level.

Our AFCFTA investment initiatives and interventions seek to:

    • Mobilize private capital at scale for Africa’s Just Energy Industrial Transition,
    • Deepen, green and develop resilient supply chains,
    • Deploy private capital at speed for Africa’s industrial development and integration,
    • Stimulate and support the creation of Just Transition Green Industrial Cities,
    • Increase and scale Africa’s access and participation in the $10trn per annum and growing green industrial economy;
    • Increase MDB de-risking to mobilize private capital for AfCFTA projects
      Ai AfCFTA Initiatives.

The first initiative

Regulations as a Stimulus initiative (RaaS): Launched at the 76th UN General Assembly in conjunction with the United Nations Development Programme (UNDP) and the AfCFTA Secretariat. RaaS is an instrument to help Heads of State strategically facilitate intra-African trade for SME’s, in lieu of the monetary stimulus that governments have struggled to implement or sustain during pandemics or economic downturns. RaaS can have a substantial impact on the African economy.With the immediate implementation of RaaS, intra-African trade could be boosted by $7.2bn per annum over the next five years and could add $500 billion to business revenue.

Additionally, it could create over 260,000 more jobs by 2027 – if transformative action is taken in five key areas: access to finance, business environment, infrastructure, before the border charges (export, import documents and procedures), and at the border costs. RaaS facilitates inclusion and tackles inequality, since sectors where women are predominant, such as food, soft commodities, and textiles are projected for an 18 per cent uplift.

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The second initiative

The ICC-AfricaPLC Digitise 5 Million SMEs Campaign: A partnership between Africa investor’s E-Trade platform AfricaPLC and the International Chamber of Commerce (ICC) to connect pan-African and global businesses, investors, and Chambers of Commerce through AfricaPLC.com as its eTrade and FinTech platform.

The third initiative

Trade Related Infrastructure Investment and the AUDA-CBN 5% Investment Agenda: This is a key AUDA-NEPAD, CBN, and African Sovereign Wealth Fund and Pension Fund leaders Forum initiative, designed for the continent’s post-pandemic industrial infrastructure investment recovery, which features a new AfCFTA Supportive Partnership Model where African and global institutional investors pursue competitive risk-adjusted returns, on the back of transactions structured by African Trade Banks, and guaranteed by Export Credit Agencies (ECAs) such as the ECA Backed Loan schemes:

Fourth initiative

AfGIIB Building and Supporting Resilient AfCFTA Supply Chains: The African Green Infrastructure Investment Bank (AfGIIB) platform, is an African Union convened, African institutional Investor led global investment platform, to catalyze private capital for Africa’s green transition.

AfGIIB has a priority focus to invest in resilient supply chains that support of the implementation of the continent’s $3.2 trillion-AfCFTA and assist private companies, especially African SMEs, in greening their supply chains across Africa, through corporate power purchase agreements (PPAs) and export credit solutions.

The Fifth initiative:

The Ai African Electronic Trade Leaders Roundtable hosted by Africa investor (Ai) in collaboration with the AfCFTA Secretariat: The Ai African Electronic Trade Leaders Roundtable bought together African and global Secretary Generals, business and government leaders, heads of Customs Organizations and Chambers of Commerce, to share their insights on the latest industry needs, trends, tools and innovations and regulatory frameworks, to facilitate a dialogue on implementation and innovative digitization partnerships, to improve access to, and the quality and quantity of African buyer information, eTrade documentation and Electronic Certificates of Origin solutions, in support of the African Continental Free Trade Area (AfCFTA).

The Sixth initiative

The Just Transition Investors Alliance (JTIA)- Green Industrial Cities Initiative: The Just Transition Investors Alliance (JTIA), launched at COP27, is an investor led, Just Transition Value Chain Investment Initiative, to manufacture and procure ‘finished goods’, from AFCFTA supported Just Transition Green Industrial Cities, predominantly located in places dependent on mining and highly carbon intensive industries, supplying the $10trn pa, Global Green Industrial Economy (GGIE).

The Just Transition Investors Alliance (JTIA), partners include The African Union Development Agency (AUDA), The African Continental Free Trade Area Secretariat (AfCFTA), The Continental Business Network (CBN), the African Green Infrastructure Investment Bank, The African Sovereign Wealth and Pension Fund leaders Forum, Africa investor (Ai) Group, the International Chamber of Commerce (ICC), The World Benchmarking Alliance and the Council for Inclusive Capitalism.

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The Seventh initiative

The AfricaPLC Roadmap Report on globalizing Africa eTrade in support of the African Continental Free Trade Area (AfCFTA): The AfCFTA and digitalization is an economic gamechanger for Africa. The AfricaPLC eTrade Roadmap Report is a call to action for the digitalization of the AfCFTA, to increase the AfCFTA’s investment attractiveness and global competitiveness, through the creation of modern digital trade corridors, powered by ‘green supply chains of the future’, driven by forward-looking regulation and eTrade marketplaces that enfranchise African SMEs and support the global decarbonisation agenda.

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The Eighth initiative

WTO Public Forum – Ai delivers Private Sector Briefing: During the 76th session of the Un General Assembly, Dr. Hubert Danso, Chairman of Africa investor (Ai) and the Chairman of the African Union Development Agency Continental Business Network (CBN), addressed the World Trade Organisation (WTO) Public Forum Session.

He discussed building resilience through strengthened regional integration and African Continental Free Trade Area (AfCFTA) implementation. This high-level WTO session highlighted the importance of regional integration in building Africa’s resilience to global economic shocks. In his address, Dr. Danso briefed WTO delegations on three key investor-led initiatives.

The Nineth initiative

Ai Briefs Citi Bank Treasury and Trade Solutions Clients on the Benefits of the Africa Continental Free Trade Area (AfCFTA): Exploring the Benefits of the Africa Continental Free Trade Area (AfCFTA) hosted by Citi Treasury and Trade Solutions. Minaz Bhuiya, Citi Treasury and Trade Solutions SSA Head for FI & Correspondent Banking talks with Dr. Hubert Danso, CEO and Chairman for Africa Investor (Ai) Group Explore the Benefits of the Africa Continental Free Trade Area:

The Tenth Initiative

G7 Leaders and Global Investors Urged to Adopt Africa TIVA ESG Policy:

Enforcing Minimum Africa Trade In-Value Added Standards to Align with SDGs, Nairobi Declaration and the Just Energy Transition”

As leaders in the global economy, G7/G20 Heads of State and global institutional investors, have a fiduciary responsibility to uphold ethical standards and promote sustainable practices. Therefore, endorsing and adopting a policy recommendation to regulate thresholds against low levels of ‘trade in value-added’ goods (TIVA) as an anti-ESG and punitive discriminatory trade practice, is crucial for advancing human rights, promoting equitable economic development, the just transition and ensuring the sustainability of investments, people and planet. Read more

The Eleventh Initiative

Trillions to Quintillions: Paving the Way to a Quintillion-Dollar Global Economy

As we stand on the brink of a green industrial revolution, the economic landscape is poised for unprecedented transformation. The adoption of sustainable technologies and practices is not only a response to the urgent climate crisis but also a catalyst for extraordinary economic growth. The significant investments in green technology and infrastructure are accelerating the global economy towards a historic milestone: a quintillion-dollar valuation this century. Read more

The Twelfth Initiative

The GreenTech Bankable Offtake Swap Model: A Vision for Sustainable Development

Today, we are witnessing innovative financial mechanisms such as debt-for-nature swaps that link economic incentives with environmental conservation. Building on this model, we propose the GreenTech Bankable Offtake Swap Model, a ground breaking private capital mobilization at-scale investment framework, designed to support EMDEs just energy transition and close the multi-trillion dollar climate finance and investment gap.

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The Thirteenth Initiative

Multipolarism: The Sustainable Geopolitical Green Industrial Investment Policy

By adopting this new multipolarism model, where regional alliances and sovereign economic interests collaborate to meet each other’s development and finance needs instead of competing, industrialized nations can secure competitive investment returns while positioning themselves to capitalize on the burgeoning $10 trillion per annum global green industrial economy. Here’s the investment case for making this strategic shift.

Here’s the investment case for making this strategic shift. Read more

The Fourteenth Initiative

Investing in regional supply chains and trade  finance to support the AfCFTA

How institutional investors’ can invest in African Trade as an Asset Class

The Agenda 2063 Financing and Domestic Resource Mobilisation Strategy contemplates the need for several investment channels to harness institutional capital to support trade. The resilience of the asset class in Africa indicates low default rates for the continent in comparison to other regions. Read more