The African Continental Free Trade Area (AfCFTA), Africa’s leading trade financing institution, African Export-Import Bank (Afreximbank), has pledged to provide an additional $20 billion until 2026 to bridge the financing gap in intra-Africa trade. The announcement was made by Benedict Oramah, the President of Afreximbank, during the opening of the bank’s annual general meeting.
Oramah emphasized the crucial role of Afreximbank in supporting the implementation of AfCFTA, stating, “Afreximbank’s existence will give AfCFTA the best chance of success.” He highlighted various initiatives undertaken by the bank, such as the Pan-African Payment and Settlement Systems, the Transit Guarantee Scheme, and the intra-Africa Trade Fair, to facilitate the smooth execution of AfCFTA.
Furthermore, Oramah emphasized the extensive reach of Afreximbank, noting, “We have SWIFT communication arrangements with almost 500 of the 600 regulated commercial banks in Africa, making Afreximbank perhaps the bank with the most extensive reach on the continent.” This extensive network positions Afreximbank to effectively support trade and financial transactions across the African continent.
Afreximbank has also made significant progress in improving access to trade services, including letters of credit, throughout Africa. Between 2020 and 2022, the bank disbursed a remarkable $45 billion across the continent, providing crucial support to governments, central and commercial banks, corporate entities, and small and medium enterprises. These efforts have enabled many entities to navigate the challenges posed by the COVID-19 pandemic and the Russia-Ukraine crisis.
Reflecting on the bank’s achievements, Oramah highlighted its steady growth, stating, “It took 30 years of dedicated service and hard work for the bank to reach $30 billion in total assets and guarantees.” He expressed confidence in Afreximbank’s future, boldly declaring the bank’s plans to double its size to $60 billion within the next six years.
With Afreximbank’s substantial commitment to AfCFTA and its track record of facilitating trade and financial transactions, the bank is poised to play a pivotal role in driving economic growth, fostering regional integration, and unlocking the immense potential of intra-Africa trade.
