The event was graced by the Right Honourable Dr. Edouard Ngirente, the Prime Minister of the Republic of Rwanda who was accompanied by the President and Chairman of the Board of Directors of Afreximbank, Prof. Benedict Oramah, Executive Vice Presidents of Afreximbank, members of the Board of Directors of FEDA and Marlene Ngoyi, Chief Executive Officer of FEDA.

Speaking at the inauguration, the Prime Minister said: “The establishment of FEDA in Rwanda reflects our commitment to not only fostering economic development within our borders but also to playing a pivotal role in the economic transformation of our continent. This initiative is a step closer to the realisation of the goals outlined in the Agenda 2063 of the African Union which lays great emphasis on the transformation of African economies and acceleration of economic growth on the continent.”

He noted that despite Africa’s significant resource endowments and contiguous markets, the continent had the lowest level of intra-regional trade in the world, adding that the continent’s share of value created remained the lowest across many products and commodities due to sub-optimal value addition.

On his part, President of Afreximbank, Prof. Benedict Oramah noted: “FEDA adds to the pool of institutions helping Africa to create its own capital base for development. With a focus on providing long-term, patient capital targeting all segments, from SMEs to corporates, and cutting across dynamic sectors of value-addition, services, and technology, FEDA is poised to drive Africa’s development under a new vision of de-commoditised, growth-oriented pathways underpinned by a dynamic private sector.”

Prof. Oramah explained: “The strategic importance of FEDA is becoming apparent just four years after it began operations. Funds Under Management under different strategies amount to about US$800 million and FEDA is using some of these funds to create and mobilise additional funds. FEDA is also a co-promoter of a US$500 million Africa Credit Opportunity Fund (ACOF) and is currently creating a US$100 million Venture Capital Fund to focus on start-ups and SMEs with seed funding from Afreximbank.”

The inauguration, which took place at the Radisson Blu Hotel and Kigali Convention Centre, was witnessed by over 150 guests drawn from the Rwandan government, the business and diplomatic community in Rwanda and representatives of the African Union and other regional economic and political bodies among others.

FEDA became the Fund Manager of the US$1 billion AfCFTA Adjustment Fund in 2023.

Media Contact:

Vincent Musumba

Manager, Communications and Events (Media Relations)

Email: press@afreximbank.com

Tel: +20 2 24564100 /1/2/3

Mobile: +201030121123

ENDS –

About FEDA:

The Fund for Export Development in Africa (“FEDA”) is the impact investment subsidiary of Afreximbank set up to provide equity, quasi-equity, and debt capital to finance the multi-billion-dollar funding gap (particularly in equity) needed to transform the Trade sector in Africa. FEDA pursues a multi-sector investment strategy along the intra-African trade, value-added export development, and manufacturing value chain which includes financial services, technology, consumer and retail goods, manufacturing, transport & logistics, agribusiness, as well as ancillary trade enabling infrastructure such as industrial parks.

About Afreximbank

African Export-Import Bank (Afreximbank) is a Pan-African multilateral financial institution mandated to finance, facilitate and promote intra and extra-African trade. For over 30 years, the Bank has been deploying innovative instruments 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 AfCFTA, Afreximbank has in partnership with the African Union Commission and AFCFTA Secretariat 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 Free Trade Agreement. The AFCFTA Secretariat and the Bank have created a USD 10 billion Adjustment Fund to support countries to effectively participate in the AfCFTA. At the end of September 2023, Afreximbank’s total assets and guarantees stood at USD 31.5 billion, and its shareholder funds amounted to USD 5.85 billion. The Bank disbursed more than USD 100 billion between 2016 and 2023 through various interventions for the advancement of the continent. 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”).For more information, visit: www.afreximbank.com

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 The facility to support the recapitalization of BDB was signed by Kanayo Awani, Executive Vice President, Intra-African Trade Bank, Afreximbank, and Nicholas Higgs, Managing Director of BDB. The signing took place on the sidelines of the final day of the Second AfriCaribbean Trade and Investment Forum (ACTIF2023). The loan facility will be in place for seven years.

 Following the signing, Executive Vice President Awani said that the facility to BDB was aligned with the Bank’s commitment to support the economic development of Africa and its Diaspora.

 “By recapitalizing the Bahamas Development Bank and focusing on trade finance and SME support, we’re not just investing in financial resources, but in the prosperity, resilience and growth of the nation of The Bahamas,” she said. “This initiative underscores Afreximbank’s commitment to empowering businesses, stimulating trade and driving economic sustainability in The Bahamas.”

 Mrs. Awani emphasized the importance of BDB in facilitating trade finance activities, which are crucial for both domestic and international trade. She added that the facility would enhance trade and commerce, ultimately leading to economic prosperity in The Bahamas, and described the recapitalization as a pivotal step in ensuring that BDB remained a robust and effective financial institution.

 Nicholas Higgs, BDB’s Managing Director, stated, “The signing of this term sheet represents the realization of a vision set forth by Prime Minister of The Bahamas, Philip Davis, with support from Bahamas Development Bank Chairman, Senator Quinton C. Lightbourne. This loan underscores the administration’s steadfast commitment to building meaningful international partnerships and driving micro, small, and medium-sized enterprise development across all islands of The Bahamas.

 We appreciate that Afreximbank aligns with our mandate as a national development bank, and we extend our sincere thanks for their support, which will be reflected through various industries on multiple islands for the benefit of all Bahamians”.

 Under the terms of the loan contract, which will be finalized with the Bahamian Ministry of Finance, BDB will direct the facility toward providing improved access to trade finance solutions to Bahamian businesses exporting to, or importing from, other Caribbean countries.

 By directing financial resources toward indigenous corporates in such key sectors as tourism, agriculture, manufacturing, and services, the facility would stimulate entrepreneurship, create employment opportunities, and foster innovation.

                                                                                      – ENDS –

About the AfriCaribbean Trade and Investment Forum

The idea for ACTIF2022 resulted from an official Afreximbank visit to Barbados in September 2021, which followed that month’s inaugural Africa/CARICOM Summit. During the visit, the Government of Barbados and Afreximbank identified the AfriCaribbean Trade and Investment Forum as a key strategic activity towards institutionalising the engagement between both regions’ private sectors to advance trade and investment relations. The inaugural edition of the AfriCaribbean Trade and Investment Forum was held in Bridgetown, Barbados, from 1 to 3 September 2022, and the second edition is being held in Georgetown, Guyana, from 30 – 31 October 2023.

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 to effectively participate in the AfCFTA. At the end of 2022, Afreximbank’s total assets and guarantees stood at over US$31 billion, and its shareholder funds amounted to US$5.2 billion. The Bank disbursed more than US$86 billion between 2016 and 2022. 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”).

Over the span of ACTIF23, the dedication to mutual growth was evident. African and Caribbean governments and their business counterparts inked several groundbreaking agreements. These spanned diverse sectors: from energy and tourism to logistics, construction, agriculture, sports and the burgeoning creative industries.
Reflecting on the forum’s culmination, Guyana’s Finance Minister, Dr. Ashni Singh shared, “Hosting ACTIF23 has been monumental for Guyana. This event has been a catalyst in reinforcing the ties between our regions and shedding light on the myriad of challenges we collectively aim to overcome”.
President and Chairman of the Board of Directors of African Export-Import Bank (Afreximbank), Prof. Benedict O. Oramah, added weight to this vision, underlining the pressing need for genuine integration. “Our collaborative endeavors signal a future where we overcome regional challenges through reinforced south-south cooperation. The horizon seems promising, with a unified payment system bridging Africa and the Caribbean becoming an imminent reality,” he noted.

Tracing back to its inception, ACTIF23 follows the foundational forum in Bridgetown, Barbados. That maiden edition witnessed a game-changing partnership between Afreximbank and CARICOM. This alliance was crafted to amplify trade and investment synergies, anchored by mutual support and financial facilitation.
With its rich tapestry of delegates—approximately 1400 from 33 African nations, 13 Caribbean territories, and 18 countries beyond – ACTIF23, co-hosted by the Government of Guyana and Afreximbank, has stamped its significance in the annals of global trade dialogues.
ACTIF23 has sculpted a roadmap for an intertwined and prosperous future for the African and Caribbean diasporas, reinforcing its stature as a cornerstone in global trade forums.

For more information about ACTIF23 please visit: https://actif2023.afreximbankevents.com/

– ENDS

About the AfriCaribbean Trade and Investment Forum
The idea for ACTIF2022 resulted from an official Afreximbank visit to Barbados in September 2021, which followed that month’s inaugural Africa/CARICOM Summit. During the visit, the Government of Barbados and Afreximbank identified the AfriCaribbean Trade and Investment Forum as a key strategic activity towards institutionalising the engagement between both regions’ private sectors to advance trade and investment relations. The inaugural edition of the AfriCaribbean Trade and Investment Forum was held in Bridgetown, Barbados from September 1–3, 2022, and the second edition is being held in Georgetown, Guyana, from 30 – 31 October 2023.

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 to effectively participate in the AfCFTA. At the end of 2022, Afreximbank’s total assets and guarantees stood at over US$31 billion, and its shareholder funds amounted to US$5.2 billion. The Bank disbursed more than US$86 billion between 2016 and 2022. 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”).
For more information, visit: www.afreximbank.com

Media contact:
Deborah Ross
Senior PR Account Director
BrandComms
+44 (0) 759 3602 128
deborah.ross@brandcommsgroup.com

The event is scheduled to take place from the 5^th to 7^th July 2023 and is expected to comprise the 23^rd Ordinary Annual General Meeting of Shareholders (AGM) and an Investor Roundtable.

The Roundtable will discuss Africa’s trade and investment risks under the theme: Re-thinking Risk. Enabling Finance, against the backdrop of the continent’s economic fallout stemming from the Covid-19 scourge, the negative consequences of Russia – Ukraine war, and climate change.

 “Several countries have emerged from these headwinds with a huge debt load, putting them at a risk of debt distress. Consequently, some sovereigns have defaulted while others are struggling to service their debt and moving closer to default. Clearly, there is need for faster and innovative solutions to sustainably manage Africa’s debt problem. There is also the issue of climate change which continues to impact negatively on many African economies. Africa needs to find a right balance between its immediate development needs and mitigating climate change,” ATI Chief Executive Officer, Manuel Moses, said.

 “It’s therefore our hope that the roundtable discussions will come up with tangible solutions to these challenges and a way forward,” he added.

 Rebranding

During the event, ATI is also expected to unveil its new brand identity as the organization positions itself to play a major role in the continent’s development.

 “We believe that the new brand will provide a better fit to ATI’s growing stature as the largest provider of investment and trade credit insurance on the continent with the ultimate goal of accelerating its impact on Africa’s development,” Mr. Moses said.

 Finance Ministers from at least 21-member countries, institutional shareholders, Regional and International Investors, Insurers, Financiers, and other governmental and non-governmental entities are expected to attend. 

 The Chairman of ATI’s AGM and Rwanda’s Minister of Finance and Economic Planning, Dr. Uzziel Ndagijimana, commended ATI for choosing the country to host its 23^rd AGM, and noted that the Rwandan Government was pleased with ATI’s support to member countries.

 “Rwanda is happy to be the host of ATI’s Annual General Meeting and I would like to extend a warm welcome to our visiting guests” Dr. Ndagijimana said.

 Rwanda is one of the seven countries that established ATI in 2001, alongside Kenya, Burundi, Malawi, Tanzania, Uganda, and Zambia; and has been an active member over the years.

Signing Ceremony of Memorandum of Understandings between PAPSS and 5 African Group Banks

June 19, 2023, in Accra, Ghana.

Accra, Wednesday 28 June 2023 – PAPSS, the Pan-African Payment and Settlement System, is delighted to announce the signing of Memorandums of Understanding (MOUs) with five African multinational commercial banking groups: Access Bank Group, Ecobank Group, KCB Group, Standard Bank Group, and UBA Group. These significant partnerships aim to revolutionise the settlement of cross-border transactions across Africa, leveraging on the vast network of subsidiaries and representative offices across major economic centres across Africa.

These MOUs were signed on Monday, 19 June 2023, at the opening ceremony of Afreximbank’s 30^th Anniversary Celebrations and 30^th Annual Meetings held in Accra, Ghana, in the presence of Heads of State and Prime Ministers from Africa and the Caribbean, Heads of continental policy and governance institutions as well as international institutions.

The signature of these Memorandums signifies a monumental step forward in the pursuit of seamless cross-border trade payments throughout the almost 40 countries covered by these Banks. The broad collaboration between PAPSS and African commercial banks will pave the way for enhanced efficiency, transparency, and reliability in intra-African settlement. The adoption of PAPSS’s cutting-edge settlement model will streamline operations and empower businesses by providing a secure and technologically advanced platform for cross-border transactions.

As part of this partnership, Access Bank Group, Ecobank Group, KCB Group, Standard Bank Group, and UBA Group will collaborate closely with PAPSS to ensure seamless integration of PAPSS into their existing systems. This collaborative effort will include opening up all their African footprints for PAPSS, facilitating settlement of transactions, encouraging the participation of Fintech in PAPSS via the banks and expanding PAPSS to all the banks’ current digital channels such as mobile app banking and e-banking.

Commenting on the signing, Professor Benedict Oramah, President of Afreximbank, said: “the signature of these MoUs marks a remarkable step towards the realisation of the aspirations of Africa’s foreleaders, who envisioned the creation of a payment and clearing union about six decades ago. It also draws us closer to domesticating cross-border payments by enabling payments for cross-border trade in African currencies while strengthening African currencies. By leveraging on the vast continental coverage of these African commercial banks, PAPSS will seamlessly facilitate cross-border trade and payments and boost intra-African trade and investments”.

Also commenting on the signing, H.E. Wamkele Mene, Secretary General of the AfCFTA, said: “the introduction of the new PAPSS Model for onboarding African Commercial Banks and the signing of the MoUs with the five African Commercial Bank Groups signifies a bold step towards the full operationalisation of PAPSS for the benefit of African traders and SMEs in the implementation of the AfCFTA Agreement.”

The Chief Executive Officer of PAPSS, Mr Mike Ogbalu III, expressed enthusiasm about these collaborations, stating that “these partnerships with Access Bank Group, Ecobank Group, KCB Group, Standard Bank Group, and UBA Group mark a significant milestone in the journey toward a more integrated and efficient African banking landscape. By embracing PAPSS’ Commercial Bank Settlement Model, these banks are helping build a robust continental platform for fostering cross-border payments, thereby paving the way for financial inclusion and substantial continental economic development.”

These MOUs will be put into effect gradually in partnership with central banks in the countries where the 5 Group Banks operate. Customers of the banks in Africa will be informed through the usual channels of communication as soon as the service becomes available in their countries. PAPSS and the banks will be working towards making this service available towards year-end.

About PAPSS

The Pan-African Payment and Settlement System – PAPSS is a centralised Financial Market Infrastructure that enables the efficient flow of money securely across African borders, minimising risk and contributing to financial integration across the regions. PAPSS works in collaboration with Africa’s central banks to provide a payment and settlement service to which commercial banks and licensed payment service providers across the region can connect as ‘Participants’. Afreximbank and the African Union (“AU”) first announced PAPSS at the Twelfth Extraordinary Summit of the African Union held on July 7, 2019, in Niamey, Niger Republic, therefore adopting PAPSS as a key instrument for the implementation of the African Continental Free Trade Agreement (AfCFTA). Further, in its thirteenth (13th) extraordinary session, held on December 5, 2020, the assembly of the African Union recommitted and instructed the Afreximbank and the AfCFTA secretariat to finalise, among others, work on the Pan-African Payments and Settlements System (PAPSS). The 35th Ordinary Session of the Assembly of the AU further directed the AfCFTA and Afreximbank to deploy the system to cover the entire continent. PAPSS was officially launched in Accra, Ghana, on January 13, 2022, thus making it available for use by the public.

For more information, visit: www.papss.com.
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Launched by Kanayo Awani, Executive Vice President, Intra-African Trade Bank, of Afreximbank on the sidelines of the ongoing 30th Afreximbank Annual Meetings (AAM2023), in the presence of Dr Ernest Addison, Governor-Bank of Ghana and Mrs Emily Mburu-Ndoria, Director-Directorate of Trade in Services, Investment, IPR and Digital Trade, AfCFTA who represented HE Wamkele Mene, Secretary General, AfCFTA, the gateway digital ecosystem comprises the MANSA (due diligence platform), the Pan-African Payment and Settlement System (PAPSS), the TRADAR Club, the Africa Trade Exchange (ATEX) and ATG Connect.

Addressing guests at the launch, Ms. Awani said that Afreximbank’s digital evolution was part of its deliberate strategic response to address Africa’s key challenges to accelerate the pace of development and foster economic prosperity for Africans using and applying digital technologies and business models.

“Each one of our digital interventions is designed to address clearly identified challenges and barriers for those seeking to engage in African trade and investment. I am pleased that each intervention has been successfully transformed from concept to reality and commend the hard work of our colleagues and partners in achieving these milestones. But to consolidate results, maximize net effects, achieve greater efficiencies, drive higher synergistic value, quicken regional integration, extend and create new access markets and accelerate digital economy in Africa, the Bank is introducing customer-centric Africa Trade Gateway.”

She described ATG as the gateway into a definitive digital ecosystem made for Africa’s trade, supported by Afreximbank and the AfCFTA in collaboration with their partners, to answer the needs of businesses, governments and stakeholders by enabling trade, commerce and investment.

With the ATG, customers could complete all their transactions within one window, explained Ms. Awani.

MANSA, Africa’s due diligence platform, provides a single source of primary data required for the conduct of customer due diligence on African entities, financial institutions, corporates and SMEs. It also provides complementary collection of information on investment in Africa, country profiles and traded products/services of African countries.

PAPSS was established to enable efficient payment for intra-African trade in national currencies, promoting intra-African trade, minimising risk and contributing to financial integration across Africa. In July 2019, African Union heads of state meeting in Niamey, adopted PAPSS as the payment and settlement system to support the implementation of the AfCFTA. It currently operates out of Cairo.

TRADAR Club, is member-driven network aimed at empowering international businesses and executives to transform trade and investments in Africa through trusted trade intelligence and advisory services through innovative digital tools and networking opportunities, helping members to discover new markets; grow their business; save time; access dedicated expert support; post and respond to new business opportunities; network; meet business/trading partners, etc. Membership is open to global industry leaders, African and foreign businesses, intergovernmental organisations, policy makers and others committed to unlocking growth and development in Africa.

ATEX is a B2B and B2G e-commerce platform launched at the 54th Conference of African Ministers of Finance, Planning and Economic Development in Dakar in May 2022, to help small and medium scale and large African businesses to tap into new markets in Africa and to facilitate the optimisation of their supply chains. It enables procurement in bulk for basic commodities to ensure access to suppliers in a transparent manner.

ATG Connect serves to connect business service providers across Africa. It provides freight and logistics connectivity solutions which allow for frictionless connecting and matching of freight/ logistics requests with freight and logistics providers listed on the platform. Customers can get quotes for the pickup and delivery of goods to and from any location in Africa at a very competitive price.

The launch ceremony included presentations on the services available under the various digital platforms and a panel discussion by the heads of the platforms during which they discussed the services they offered in support of trade across Africa and the implementation of the AfCFTA.

– Ends –

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 to effectively participate in the AfCFTA. At the end of 2022, Afreximbank’s total assets and guarantees stood at over US$31 billion, and its shareholder funds amounted to US$5.2 billion. The Bank disbursed more than US$86 billion between 2016 and 2022. 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”).

For more information, visit: www.afreximbank.com

The Heads of Terms was signed by Mrs Kanayo Awani – Executive Vice President, Intra-African Trade Bank at Afreximbank and Dr Michael Anyetei – Managing Director, Ghana Railways Company Limited. Under the Heads of Terms of the project preparation facility, the Bank will avail early-stage project preparatory funding to finance the preparation of bankable feasibility studies. The Pre-Mandate Letter appoints Afreximbank to perform certain tasks in advance of the project attaining bankability aimed at raising the debt facility amount, currently estimated at US$ 2.1 billion.

Under the terms of the agreements, signed during the Afreximbank Annual Meetings (AAM2023), Afreximbank committed to prescribe financial solutions, including project preparatory support, project financing, syndication and financial advisory services, and risk bearing instruments, to enable the project attain a timeous financial close.

The Bank believes that pursuing railway investments along the continent’s trade corridors would expand existing capacities and create new routes, links and pathways for value-added goods to be transported from manufacturing and processing areas to regional and global markets, thereby promoting intra-African trade within the AfCFTA context. This is evidenced by new mining projects and expansion of existing mining projects being planned in the country that stand to benefit from the project through more efficient and competitive transportation of imports and exports thereby boosting trade, regional integration and overall economic development.

Prof. Benedict Oramah, President and Chairman of the Board of Directors of Afreximbank, said, “The Western Railway Corridor project is a vital transport network for Ghana, and Afreximbank’s support is in line with our commitment to help member countries address key trade-enabling infrastructure bottlenecks through private sector-led investments that will unlock significant pent-up demand for Ghanaian mineral and agricultural commodities in regional and international markets. Am particularly thrilled that in this project, Afreximbank and its partners are pioneering our innovative non-recourse project finance solution premised on freight volumes and not member countries debt-carrying capacity. Such novel approaches present concrete steps Afreximbank is taking towards paving the way for member countries economic transformation. We look forward to rolling out this solution to other member countries across the continent.”

The project, when fully implemented, is expected to reduce transport costs by 30 per cent, increase the safety and reliability of transport services, and stimulate Ghanaian trade and economic growth.  About 5,000 jobs are expected to be created directly during the implementation phase, with another 50,000 indirect opportunities created along the railway corridor in addition to the training of 400 citizens of Ghana to participate in all levels of the project implementation. The railway line will also facilitate the export of minerals and commodities resulting in at least US$ 950 million of trade per annum.

– Ends –

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 to effectively participate in the AfCFTA. At the end of 2022, Afreximbank’s total assets and guarantees stood at over US$31 billion, and its shareholder funds amounted to US$5.2 billion. The Bank disbursed more than US$86 billion between 2016 and 2022. 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 rating affirmation is a strong testament of the Bank’s systemic relevance to Africa and captures the increasing number of the key mandates given to the Bank by the African Union (AU), such as the implementation of the health response to the COVID-19 pandemic and the support for access to grains and fertilizers in the context of the Russia-Ukraine conflict.

Fitch acknowledged Afreximbank’s strong capital and liquidity position. In addition to the ‘excellent’ internal capital generation, the Bank had raised US$1.4 billion paid-in capital, as of 2022, out of the planned raise of US$2.6 billion by 2026. The agency noted that Afreximbank had a strong liquidity profile, as its share of treasury assets rated ‘AA’ to ‘AAA’ remained above the ‘strong’ threshold of 40 per cent. It added that the Bank’s liquidity profile was further enhanced by its access to capital markets and other alternative liquidity sources even during challenging times.

 The Bank has continuously demonstrated its ability to de-risk its lending portfolio, noted Fitch. With a low concentration risk, coupled with a high collateralisation of the loan book, where 25 per cent of the loan book was cash collateralised and eight per cent was credit insured from ‘A’ to ‘AA’ rated insurers, “the ‘moderate’ risk management policies primarily reflect the use of credit risk mitigants that have helped maintain a relatively low non-performing loan ratio, despite the high-risk environment that the bank operates in.”

 Commenting on the development, Prof. Benedict Oramah, President and Chairman of the Board of Directors of Afreximbank, said that Fitch’s affirmation is a strong testament to the Bank’s strong developmental mandate and its increasing countercyclical role in helping its member countries during challenging times. The Bank has continued to contribute and define the path for Africa’s economic future through the creation of programmes and initiatives that support the emergence of integrated and well diversified African economy that adapts and responds to global shocks.

 “The Bank’s consistent and prudent response to member countries’ needs during challenging times and its ability to manage exposures prudently have led to its recognition by member countries as a systemic institution as evidenced by its accreditation by the AU and its selection by the AU as a preferred partner in implementing some AU strategic initiatives,” noted the President.

– Ends –

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 to effectively participate in the AfCFTA. At the end of 2022, Afreximbank’s total assets and guarantees stood at over US$31 billion, and its shareholder funds amounted to US$5.2 billion. The Bank disbursed more than US$86 billion between 2016 and 2022. 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”).

For more information, visit: www.afreximbank.com

The Afreximbank Annual Meetings (AAM2023), which end on 21 June, is also being held to celebrate the 30^th anniversary of the establishment of Afreximbank.

Mohamed Ahmed Maait, Minister of Finance of Egypt and Chairman of the Afreximbank Annual Meetings, who was represented by Gamal Negm, Deputy Governor of the Central Bank of Egypt, told participants that Africans must work collaboratively towards finding integrated solutions to the new challenges confronting the continent.

Mr. Maait lauded Afreximbank for playing a significant role in developing and implementing solutions to address the challenges confronting Africa and expressed the hope that AAM2023 would lead to even more constructive solutions to Africa’s problems, describing the Bank as one of the African institutions delivering on the African Union’s (AU) Vision 2063.

Earlier, Dr. Honorable Ernest Yedu Addison, Governor of the Bank of Ghana, delivering his welcome remarks, said that Ghana represented the most appropriate venue for the celebration of Afreximbank’s 30^th anniversary, given the Bank’s role in developing and promoting African trade and the fact that Ghana was the home of the African Continental Free Trade Area (AfCFTA) Secretariat.

Dr. Addison said that Afreximbank had been very supportive of Ghana and had, over the years, provided more than two billion dollars to support the Ghanaian economy.

He commended Afreximbank for the approach it adopted in its work which emphasised a collaborative approach in dealing with other continental institutions.

In his contribution, Wamkele Mene, Secretary-General of the AfCFTA Secretariat, said that with the inclusion of a vision for an integrated African market in the founding treaty of the OAU, the founding fathers of the AU had foreseen the need for Afreximbank.

That vision had been grounded in the objective of the integration of African trade finance, he noted.

Describing Afreximbank and the AfCFTA as twins born 30 years apart, Mr. Mene noted that if trade barriers were eliminated but there was no trade finance, all the efforts would come to nothing. At the same time, if trade finance was available but trade barriers persisted and prevented trade, then all the efforts would still have been wasted.

Mr. Mene commended the support and collaboration which Afreximbank had provided for the  implementation of the AfCFTA, including the introduction of the AfCFTA Adjustment Fund and the establishment of the Pan-African Payment and settlement System (PAPPS). That support was critical as Africa sought to rely on itself to create a better future, he added,

Delivering a keynote to kick off the first panel session of the day, Mahamadou Issoufou, former President of Niger, said that with Africa accounting for a significant proportion of the world’s arable land, it was time for the continent to be able to feed itself, noting that a focus on agriculture and agro-industrtialisation would also lead to creation of employment.

Mr. Issoufou commended Afreximbank for its support for the AfCFTA project, which had included supplying indispensable personnel, in addition to making investments, such as the AfCFTA Adjustment Fund to help countries adapt to the AfCFTA and improve their ability to compete in the new trade regime for which the Bank had already provided $1 billion.

Afreximbank had also launched PAPSS in order to allow for intra-African trade payments to be done in local currencies, he noted. It had also introduced the Intra-African Trade Fair (IATF), a platform for exchange which Africa needed in order to meet the needs of the AfCFTA.

The morning also featured panel sessions on: Turbo-charging implementation of the AfCFTA; Building prosperity for Africans: the challenges of peace and security; and What would it take for Africa to feed itself – overcoming the challenges of food security for sustainable development in Africa; as well as a conversation with Aliko Dangote, Group President/Chief Executive of Dangote Group.

– Ends –

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 to effectively participate in the AfCFTA. At the end of 2022, Afreximbank’s total assets and guarantees stood at over US$31 billion, and its shareholder funds amounted to US$5.2 billion. The Bank disbursed more than US$86 billion between 2016 and 2022. 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”).