The African Union has unanimously endorsed Nigeria's proposal to establish a $20 billion financing mechanism to support small and medium enterprises operating under the African Continental Free Trade Area, at a summit in Addis Ababa that marked the fourth anniversary of the trade agreement's entry into force.

The fund, which will be co-managed by the African Development Bank and the AfCFTA Secretariat, will provide loan guarantees, trade finance instruments and technical assistance to SMEs seeking to expand across borders within the free trade area.