Communiqué of the 4th African Sub-Sovereign Governments Network (AfSNET) Conference in Kisumu / Kenya

(Posted 30th November 2024)

African sub-sovereign governments are essential for realising the goals of the AfCFTA by promoting cross-border industrial clusters and trade partnerships that transcend national boundaries

WE, the Network of African Sub-Sovereign Governments, having convened at the 4th African Sub-Sovereign Governments Network (AfSNET) Conference, hosted by the County Government of Kisumu, and jointly organised by African Export-Import Bank and the United Cities and Local Governments of Africa (UCLG Africa).

HAVING deliberated on the theme “Leveraging the AfCFTA for Sustainable Trade and Investment: A Development Pathway for African Sub-Sovereigns”

ACKNOWLEDGING the commitment of the Network to the implementation of the AfCFTA;

EXPRESSING OUR DEEP GRATITUDE to His Excellency Dr. William Samoei Ruto, CGH,  President of the Republic of Kenya, for his insightful address, wherein he emphasised the critical role of sub-sovereign governments in driving economic growth and regional integration. His Excellency further underscored the importance of infrastructure development, digital transformation, and public-private partnerships in achieving sustainable development goals. He also EMPHASISED the need to strengthen African institutions, such as Afreximbank, to deliver tailored solutions for Africa, while COMMENDING the bank’s efforts in facilitating collaboration and advancing the aspirations of the African Continental Free Trade Area (AfCFTA);

ACKNOWLEDGING the significant role that African sub-sovereign governments play in regional economic development and integration, recognising Kenya’s successful devolution model as a pathway for empowering grassroots participation, enhancing equity in resource allocation, and improving service delivery, and commending Kisumu County’s contribution as an emerging hub for international trade and investment;

ACKNOWLEDGING FURTHER that the African Sub-Sovereign Governments Network (AfSNET) serves as a critical framework for enhancing cooperation, dialogue, innovation among sub-sovereign governments and the promotion of Trade and investment across the African continent;

APPRECIATING Afreximbank’s financial commitment of $2 billion to support African sub-sovereign governments in trade-enabling infrastructure, industrialisation projects, and capacity-building initiatives, as well as its innovative solutions, products and initiatives such as the African Trade Gateway (ATG), which includes the Pan-African Payment and Settlement System (PAPSS), Industrial Parks and Export Processing Zones, Project Preparation Facility (PPF), and Africa Quality Assurance Centres (AQACs);

APPLAUDING Afreximbank’s initiative in organising a targeted training session for African investment promotion agencies on November 25, which attracted over 210 investment professionals and participants, focusing on investment promotion and facilitation;

NOTING WITH ENTHUSIASM the signing of key investment deals during the Conference, such as the USD 40 million Med Aditus Pharmaceutical Kenya Limited Project and the generation of over $1.7 billion investment deals during the Conference;  

NOTING FURTHER efforts towards the establishment of the Africa Territorial Trade and Investment Agency (ATIA) by UCLG Africa as a special-purpose vehicle to finance infrastructure and capacity-building needs for African sub-sovereign governments, with operationalisation expected by 2026;

EMPHASISING that:

1. African sub-sovereign governments are essential for realising the goals of the AfCFTA by promoting cross-border industrial clusters and trade partnerships that transcend national boundaries.
2. Sub-sovereign governments must prioritise the inclusion of small businesses in intra-African trade value chains and invest in trade-enabling infrastructure such as roads, railways, ports, and energy systems.
3. Urbanisation presents challenges of youth unemployment and rising crime; therefore, sub-sovereigns must catalyse trade and investment to create job opportunities and improve quality of life.
4. Investments in intermediary cities like Kisumu are critical for connecting rural and urban economies and unlocking Africa’s economic potential.
5. Sub-sovereign governments should designate resources at the local level to manage and monitor projects effectively, ensuring streamlined follow-up and coordination.
6. The establishment of a continental transit guarantee system is crucial for facilitating the movement of goods across regional economic communities, enhancing intra-African trade, and supporting AfCFTA objectives.
7. Digital transformation, through initiatives like Afreximbank’s African Trade Gateway (ATG), is essential for improving governance, service delivery, and trade facilitation.
8. Capacity-building programs and knowledge-sharing initiatives for sub-sovereign governments are critical to equipping them with the skills and expertise to effectively implement development projects and policies.
9. Youth and gender inclusion in economic activities must be prioritised to ensure equitable and sustainable development outcomes.
10. Public-private partnerships (PPPs) are vital for mobilising resources and expertise to implement infrastructure projects and support sustainable development goals.

RESOLVING to:

1. Enhance collaboration through AfSNET to address decentralisation challenges, promote industrialisation, and develop export-oriented industrial parks, special economic zones, and quality assurance centers.
2. Mobilise resources to implement transformative projects that advance economic development, promote industrialisation, and enhance trade-enabling infrastructure. These initiatives will focus on empowering sub-sovereign governments to address local development challenges, create employment opportunities, and strengthen regional trade networks in alignment with AfCFTA goals.
3. Encourage sub-sovereigns to identify viable projects, including those driven by private-sector initiatives, and submit them to Afreximbank’s Project Preparation Facility for funding support.
4. Leverage platforms like the Intra-African Trade Fair (IATF) to showcase trade and investment opportunities and strengthen partnerships for sustainable development. Sub-sovereigns are encouraged to secure pavilions, designate special days, and identify priority projects to present during IATF 2025 in Algiers, Algeria, from September 4 to 10.
5. Partner with Afreximbank to transition from planning to execution, focusing on implementing tangible projects with measurable development impacts.
6. Promote industrial development that is environmentally sustainable, aligning with transitions to green economies and balancing economic growth with environmental stewardship.
7. Develop an institutional framework to operationalise AfSNET fully, leveraging Afreximbank’s support to ensure the network’s long-term success and sustainability.

CALLING UPON:

1. Sub-sovereign governments to actively participate in AfSNET’s initiatives and leverage Public, Private Partnerships to address funding gaps and attract investments.
2. Development partners, including regional development banks, to support infrastructure financing and capacity-building for sub-sovereign governments.
3. National governments to facilitate decentralisation and align national policies with the comparative advantages of their sub-sovereigns.
4. Private-sector entities to collaborate with sub-sovereign governments to advance trade-enabling infrastructure and innovative investment projects.
5. African Sub-sovereigns to establish institutional frameworks that support the attraction of investments, such as the creation of legal entities in the form of Special Purpose Vehicles (SPVs). These entities could act as holding companies and project sponsors, enabling them to engage investors and financiers effectively and secure financing for their priority projects without direct encumbrances to the sub-sovereigns.
6. Private-sector entities to collaborate with sub-sovereign governments to advance trade-enabling infrastructure and innovative investment projects.

EXPRESSING GRATITUDE to His Excellency Dr. William Samoei Ruto, CGH, President of Kenya, for gracing the Conference with his presence; the County Government of Kisumu under the able leadership of Prof. Peter Anyang’ Nyong’o; the Lake Region Block; Afreximbank; and UCLG Africa for organising the 4th AfSNET Conference. Appreciation is also extended to the over 935 participants from across the African continent for their valuable contributions to the discussions and outcomes;

COMMIT to support and collaborate towards the regular convening of the AfSNET Investment Conference as a platform to enhance trade and investment and the mutual prosperity of Africa.

LOOKING FORWARD to the 5th AfSNET Conference, scheduled to take place during the Intra-African Trade Fair (IATF) in Algiers, Algeria, from September 4 to 10, 2025.