writes Baboloki Semele: The African Export-Import Bank (Afreximbank) has unveiled a strategic plan to double its financing for intra-African trade, increasing from US$20 billion in 2021 to an ambitious US$40 billion by 2026. This announcement was made by Mr. Haytham ElMaayergi, Afreximbank’s Executive Vice President, Global Trade Bank, during the African Caucus Meeting of the World Bank Group and the International Monetary Fund (IMF) held in Abuja on the first to the third of August 20224.
The African Caucus Meeting, which gathered ministers of finance and Central Bank Governors from across the continent, focused on the theme “Facilitating Intra-African Trade: Catalyst for Sustainable Development in Africa.” The discussions aimed to address key challenges to Africa’s full integration and explore strategic solutions for sustainable development.
In his address, Mr. ElMaayergi emphasized Afreximbank’s pivotal role in facilitating intra-African trade since its inception. The bank has committed US$1 billion to support the African Continental Free Trade Area (AfCFTA) Adjustment Fund and has provided a US$10 million grant to ensure the fund’s establishment and operationalization.
“The Bank is also partnering with the AfCFTA Secretariat and the African Union Commission (AUC) to ensure the successful implementation of the Pan-African Payments and Settlements System, the African Trade Gateway, and the Afreximbank African Collaborative Transit Guarantee Scheme,” stated Mr. ElMaayergi.
Highlighting Nigeria’s significant contribution as a founding member and the second-largest shareholder of Afreximbank, Mr. ElMaayergi noted that the bank has approved over US$40 billion in support of Nigerian public and private sector entities since its inception in 1993. He also mentioned that several flagship continental initiatives, including the African Medical Centre of Excellence and the Afreximbank African Trade Centre, are currently being implemented in Nigeria.
Mr. ElMaayergi further emphasized the importance of African multilateral financial institutions in addressing the continent’s critical financing gaps. He announced the launch of the Alliance of African Multilateral Financial Institutions (AAMFI) in collaboration with the AUC. This initiative was unveiled during the 37th Ordinary Session of the Assembly of the Heads of State and Government of the African Union in Addis Ababa, February 2024.
The AAMFI membership includes key financial institutions such as the Africa Finance Corporation, Trade and Development Bank Group, and African Reinsurance Corporation. Mr. ElMaayergi urged the World Bank and the IMF to collaborate with AAMFI in addressing Africa’s challenges and to respect the special privileges and immunities granted to these institutions, including their preferred creditor status.
As a Pan-African multilateral financial institution, Afreximbank has been at the forefront of financing and promoting intra-and extra-African trade for the past 30 years. The bank’s innovative financing solutions have significantly contributed to Africa’s industrialization and intra-regional trade, accelerating the continent’s economic growth.
At the end of December 2023, Afreximbank’s total assets and guarantees exceeded US$37.3 billion, with shareholder funds amounting to US$6.1 billion. The bank continues to support the implementation of the AfCFTA through the launch of the Pan-African Payment and Settlement System (PAPSS) and the establishment of a US$10 billion Adjustment Fund.
As Africa moves towards greater economic integration, Afreximbank’s commitment to doubling its trade financing by 2026 is set to play a crucial role in achieving the continent’s development goals, fostering sustainable growth, and enhancing Africa’s position on the global economic stage.
About Afreximbank
African Export-Import Bank (Afreximbank) is a Pan-African multilateral financial institution mandated to finance and promote intra-and extra-African trade. For 30 years, the Bank has been deploying innovative structures to deliver financing solutions that support the transformation of the structure of Africa’s trade, accelerating industrialization and intra-regional trade, thereby boosting economic expansion in Africa. A stalwart supporter of the African Continental Free Trade Agreement (AfCFTA), Afreximbank has launched a Pan-African Payment and Settlement System (PAPSS) that was adopted by the African Union (AU) as the payment and settlement platform to underpin the implementation of the AfCFTA. Working with the AfCFTA Secretariat and the AU, the Bank is setting up a US$10 billion Adjustment Fund to support countries effectively participating in the AfCFTA. At the end of December 2023, Afreximbank’s total assets and guarantees stood at over US$37.3 billion, and its shareholder funds amounted to US$6.1 billion. Afreximbank has investment grade ratings assigned by GCR (international scale) (A), Moody’s (Baa1), Japan Credit Rating Agency (JCR) (A-) and Fitch (BBB). Afreximbank has evolved into a group entity comprising the Bank, its impact fund subsidiary called the Fund for Export Development Africa (FEDA), and its insurance management subsidiary, AfrexInsure (together, “the Group”). The Bank is headquartered in Cairo, Egypt.
On the Photo: Mr. Haytham ElMaayergi, Afreximbank’s Executive Vice President, Global Trade Bank
Photo credit: Afreximbank
