The African Export-Import Bank (Afreximbank) has announced its ambitious plan to double its financing for intra-African trade from $20 billion in 2021 to $40 billion by 2026. This significant expansion was revealed 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 from August 1–3, 2024.
Mr. ElMaayergi, who represented Prof. Benedict Oramah, President and Chairman of the Board of Directors of Afreximbank, emphasized the bank's longstanding commitment to facilitating intra-African trade. He highlighted that Afreximbank has already committed $1 billion to support the African Continental Free Trade Area (AfCFTA) Adjustment Fund and provided a $10 million grant for its establishment and operationalization.
The Caucus meeting, attended by African ministers of finance and Central Bank Governors, focused on the theme "Facilitating Intra-African Trade: Catalyst for Sustainable Development in Africa." Discussions centered around the challenges facing Africa in achieving full economic integration and exploring strategic solutions to drive sustainable development across the continent.
Afreximbank's increased financial commitment underscores its role as a key driver in advancing Africa's economic integration and growth.
“The Bank is also partnering with the AfCFTA Secretariat and the African Union Commission (AUC) to ensure a successful implementation of the Pan-African Payments and Settlements System, the African Trade Gateway and the Afreximbank African Collaborative Transit Guarantee Scheme,” he continued.
Mr. ElMaayergi noted that Nigeria was a key founding member of the Bank and had continued to play a critical role in its growth and success as its second largest shareholder, adding that Afreximbank had also played a critical role in supporting the country’s development agenda.
“Since inception in 1993, the Bank has approved over US$40 billion in support of Nigerian public and private sector entities,” he said, adding that it was currently implementing several of its flagship continental initiatives in the country, including the African Medical Centre of Excellence and the Afreximbank African Trade Centre.
Highlighting the existence of several other continental multilateral financial institutions created to help address the critical financing gaps in Africa and facilitate trade, with privileges and capitalisation granted them to enable them to fulfil their mandates, Mr. ElMaayergi indicated that it was to enhance their effectiveness that the Alliance of African Multilateral Financial Institutions (AAMFI) was launched, in collaboration with the AUC, on the margins of the 37th Ordinary Session of the Assembly of the Heads of State and Government of the AU in Addis Ababa in February.
He noted that the AU had recognised African multilateral financial institutions as crucial for strengthening the continental financial framework and advancing the AU’s Agenda 2063 and called on the meeting participants to reaffirm their commitment to those institutions. He urged the World Bank and the IMF to work with AAMFI in addressing the continent’s challenges.
“Most especially, we call on you to reaffirm that the special privileges and immunities that you have given these institutions, including the preferred creditor status, are essential for addressing the continent’s development needs, and to call upon all stakeholders to respect the treaty obligations you have made to these institutions,” added Mr. ElMaayergi.
The membership of AAMFI currently includes Africa Finance Corporation; Afreximbank; Trade and Development Bank Group; African Reinsurance Corporation; African Trade and Investment Development Insurance; Shelter Afrique Development Bank; PTA Reinsurance Company; East African Development Bank; and African Solidarity Fund.
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