E.A Business Council, partners launch new Africa Due Diligence platform to unlock export potential.
The MANSA platform will provide trade opportunities and cheaper credit to Africa businesses under the Africa Continental free trade area
East Africa Business Council (EABC) together with Private Sector Foundation Uganda and Afreximbank on Wednesday, 20th October 2021 officially launched the African Due Diligence Platform in Uganda aimed at unlocking regional and Africa’s export potential.
The MANSA digital platform provides a single primary source of Know-Your-Customer (KYC) data required to conduct customer diligence checks on counterparties in Africa with a special focus on African Corporates, SMEs and financial institutions. The MANSA digital platform reduces risks to intra-African trade such as increased financial crime and reduces the high-cost acquisition of Customer Due Diligence.
The CEO EABC John Bosco Kalisa EABC CEO said that the MANSA as a new due diligence platform will be rolled out throughout the region.
He added that Word Bank research shows that the removal compliance cost and NTBs in Africa will result in USD.300 billion boosts in income.
“EABC is the first institution to roll out the African Due Diligence Platform –MANSA and will roll out the platform to all EAC Partner States.”
He urged the EAC bloc to promote industrialization, value addition and build productive capacities to tap into the continental Market.
The Vice Chairman of EABC Simon Kaheru while speaking during the ceremony said “Let’s live to the aspirations of Mansa Musa and thanks to Afreximbank African businesses have the opportunity to conduct due diligence and trade with much more ease via the Mansa Digital Platform.”
Kaheru said to conduct trade across African borders you have to Know Your Customer. He applauded the MANSA platform for unlocking and activating trading under the Africa Continental Free Trade Area. He said East African industries can only survive by tapping into the larger continental market.
Kudakwashe Matereke, Regional COO Afreximbank East Africa Branch Office said “the Mansa platform promotes trade among corporates and SMEs driving the Agenda 2063 – the Africa We Want”
Matereke said the AfCFTA stimulates intra-Africa trade and advances economic integration.
He stated that the AfCFTA is set to revolutionalize trade, reduce the continent’s reliance on the export of raw materials and reshape markets and boost continental GDP to USD. USD450 billion.
In his presentation on AfCFTA market opportunities, Mr. Adrian Njau, EABC Policy Expert said AfCFTA is set to generate additional 2 million jobs, grow regional value chains and expand the EAC economy by 0.7 %.
He said the high cost of trade, overlapping membership of regional economic communities and low level of digitalization are among the challenges to the AfCFTA.
Dr. Isaac Shinyekwa from Economic Policy Research Centre said on Rules of Origin 86.9 % tariff lines (products) have been negotiated and agreed while 13.1% are still outstanding under the AfCFTA.
The launch was attended by over 100 business captains including Mr. Lino Criel, Secretary-General Uganda Clearing Industries and Forwarders Association (UCIFA), Mr. Mwine Jim Kabeho, EABC Chairman Emeritus, Thaddeus Musoke, Chairman Kampala Capital City Traders' Association (KACITA) and leaders of Uganda Law Society among others.
In 2020 Africa composed 34% of Uganda’s exports. Uganda’s Intra-Africa exports amounted to USD1.4 billion in 2020 a 7.7% increase from 2019. Uganda’sIntra-Africa imports amounted to USD.2.8billion in 2020 – a 40% increase compared to 2019. Uganda can realize additional exports worth USD. 73 million to Africa from top products such as sugar, coffee, dairy, cement, palm oil, tea, beans, grain, soaps maize (international trade Centre).