Professor Benedict Oramah, President and Chairman of the Board of Directors of African Export-Import Bank (Afreximbank), stated in Cairo that trade between Africa and the rest of the world increased dramatically as the world gradually recovered from the COVID-19 pandemic.
Professor Oramah presented the African Trade Report at the 29th Afreximbank Annual Meetings (AAM2022) alongside Lai Mohammed, the Federal Republic of Nigeria’s Minister of Information, Culture, and Tourism. He noted that Africa demonstrated resilience in the face of the COVID-19 pandemic, contracting by just 1.6% during its first recession in 25 years and rebounding strongly with a GDP expansion of roughly 6.9% in 2021.
“African trade grew significantly just as the world was gradually recovering from the COVID-19 pandemic,” according to a statement from Oramah. She also added that intra-African trade remained resilient despite the COVID-19-imposed restrictions.
He said that coordinated efforts by governments, development finance organizations, and international organizations—such as the IMF through its Rapid Credit Facility and Afreximbank through its Pandemic Trade Impact Mitigation Facility (PATIMFA)—were responsible for Africa’s resilience.
The chief economist at Afreximbank, Dr. Hippolyte Fofack, pointed out that even while African economies are becoming more resilient, the continent still contributes very little to global trade and growth—roughly 2.6% of global trade and less than 3% of global GDP.
He cited the report’s recommendation that Africa adopt the AfCFTA, which has been hailed as a game-changer, to speed up the process of structural reform and growth in order to raise its share of global growth and trade and to boost its integration into the global economy.
Professor Oramah stated that Africa also needed to develop underutilized sectors, like the creative and cultural industries (CCIs), which are among the fastest-growing in the world, employing over 30 million people and generating US$ 2.25 trillion (3% of global GDP). Despite receiving little attention, CCIs have the potential to spur economic growth and the creation of jobs in the digital era.
According to Dr. Fofack, Africa’s creative industries may be the treasure trove of the twenty-first century, sustaining structural change and economic growth:
“In the AfCFTA era, where intellectual property rights will be sacrosanct, leveraging Africa’s rich cultural heritage and the creative potential of its youth can propel both cultural renaissance and economic transformations.” By fostering cultural convergence, the CCIs have the potential to accelerate economic growth and strengthen economic integration, he stated.
With Nollywood emerging as the second-largest film producer and exporter in the world and the African gaming industry expected to increase by 12% by 2025, Dr. Fofack continued, highlighting the tremendous potential of CCIs in Africa. The African Union proclaimed 2021 the Year of the Arts, Culture, and Heritage: Levers for Building Africa We Want, he explained, for these reasons.
The world is rediscovering Africa’s rich cultural heritage and beauty at a time when digitalization and the creative energy of African youth are catalyzing the growth of African CCIs. Globalization and new technologies have accelerated cultural interactions among nations.
Afreximbank has become a significant player in the sector by lowering the capital gap that African creative organizations confront and by investing in young people to unlock their creative potential through its Creative African Nexus (CANEX). The Federal Republic of Nigeria’s Minister of Information, Culture, and Tourism, H.E. Mr. Lai Mohammed, commended Afreximbank for its backing of CCIs throughout Africa.
“This African Trade Report 2022 demonstrates that Africa has a bright future, and I recommend that everyone read it,” he stated.
“Leveraging the Power of Culture and Creative Industries for Accelerated Structural Transformation in the AfCFTA era” is the main theme of the Africa Trade Report.
