아프리카ㆍ중동

REPORT AND RECOMMENDATIONS OF THE MANAGEMENT TO THE BOARD OF DIRECTORS ON A PROPOSED LOAN FOR THE IMPLEMENTATION OF THE REGIONAL AFRICAN TRADE INSURANCE (ATI) - COUNTRY MEMBERSHIP PROGRAMME (RACMP).

Management submits the following Report and Recommendations on a proposed ADF loan for UA19.87 million to finance the Regional ATI Country Membership Programme (RACMP)

1. STRATEGIC THRUST AND RATIONALE

1.1. Introduction

1.1.1. Africa’s stated goal as enshrined in the Abuja Treaty (1991) is the creation of an African Economic Community (AEC) for an integrated, inter-connected and prosperous Continent. The 8 African Union official Regional Economic Communities (RECs) are the building blocks for achieving this objective of regional integration. As a follow-through, the African Trade Insurance (ATI) was established in 2001, under an International Treaty by African Member States at the initiative of Common Market for Eastern and Southern Africa (COMESA) and with the technical and financial support of the World Bank, to provide medium-long term credit and political risk insurance as well as other risk mitigation products to African countries/businesses.

1.1.2. The levels of intra-African trade stand at a low average of around 13% of the total trade. The share of intra-African export trade in global trade has seen a steady decline: 6.5% (in 1953), 5.7% (1963), 4.8% (1973), 4.5% (1983), 2.5% (1993), 2.4% (2003). It showed only a modest recovery to 3.3% in 2011. There is therefore need to raise the institutional capacity of African banks and reduce the perceived risk of doing business with and in Africa. The focus countries of this programme - Benin, Ethiopia and Cote d’Ivoire respectively rank, in the Ease of Doing Business benchmarked as of June 2014, at 151, 132 and 147 positions out of 189 countries assessed globally. The situation in these countries is difficult for business and requires easing. Through the respective CSPs, the Bank is supporting reforms to help improve the business environment in these countries.

 

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