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Africa Plans $8 Billion Fund to Offset Trade-Pact Losses (1)

July 16, 2021, 8:28 AM

African nations plan to raise about $8 billion for a fund to help offset revenue losses for countries that lower cross-border tariffs, as part of a continent-wide free-trade agreement.

The African Export-Import Bank, or Afreximbank, previously provided $1 billion for the fund after the African Union set it up to help cushion sudden revenue losses and encourage participation. The free-trade area went into effect on Jan. 1.

“The $1 billion made available by Afreximbank will be used to leverage funding from other multilateral development-finance institutions, export credit agencies, commercial banks and donors,” Afreximbank said in an emailed response to ...