NAIROBI, (The Southern African Times) – As the African Continental Free Trade Area comes into effect, regional trade stakeholders have launched a source of data required to conduct due diligence on African entities; Financial Institutions, Corporates and SMEs, dubbed Mansa.
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.
This consequently reduces the risks to intra-African trade such as increased financial crime and reduces the high-cost acquisition data.
This will among other things increase access to financing for SMEs after the identification of business opportunities in regional markets.
Due diligence in regional and cross border trade involves accessing and identifying existing or potential compliance issues with respect to international trade and commerce, including export controls, sanctions, and customs laws and regulations.
This also gives insights into financial records, past company performance, among other aspects required on clients to ascertain the chances of trade.
The platform championed by Afreximbank and East Africa Business council among other entities is aimed at unlocking and activating trading under the Africa Continental Free Trade Area.
East African Business Council Chief Executive John Bosco Kalisa said that they are the first institution to roll out the African Due Diligence Platform –MANSA and will roll out the platform to all EAC Partner States.
He noted that Word Bank research shows that the removal of compliance costs and NTBs in Africa will result in $300 billion boosts in income.
Kalisa called on the EAC bloc to promote industrialization, value addition and build productive capacities to tap into the continental Market.
Maureen Mba, Head Mansa Business, Afreximbank said that the digital platform could be a game-changer for intra-Africa trade by driving transparency and good governance
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 per cent.
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.
The commencement of trading under the African Continental Free Trade Area on January 1st this year is expected to create growth opportunities for Rwandan producers and exporters, especially in untapped markets.
The mechanism is expected to drive Rwanda’s exports to the African continent from the current $1.6B annually to about $5B in 10 years.
Among the markets that will bring fortunes to local exporters and traders including neighbouring DR Congo which is one of the leading markets for Rwandan produce.
Other markets that Rwanda is eying include the Economic Community of West African States namely Nigeria, Ghana and Senegal and Economic Community of Central African States (ECCAS) including Gabon, Congo Brazzaville and Angola.
