Afreximbank gives $60b credit to African businesses

Having approved $60 billion in credit
facilities for African businesses, the African Export-Import Bank
(Afreximbank) has set up trade finance facilitation programme.

 

Afreximbank, the foremost pan-African
multilateral financial institution is devoted to financing and promoting
intra- and extra-African trade.

 

It was established in October 1993 by
African governments, African private and institutional investors, and
non-African investors.

 

Since 1994, it has approved about $60
billion in credit facilities for African businesses, including about
$8.5 billion in 2017. The bank is headquartered in Cairo.

 

Its trade finance facilitation programme
is to mitigate the stringent compliance and regulatory requirements
imposed by international banks on African banks for trade confirmation
lines.

 

Mr Obi Emekekwue, the bank’s Director and
Global Head, Communications and Events Management Department, quoted
Amr Kamel, Afreximbank’s Executive Vice-President for Business
Development and Corporate Banking as unveiling the programme
in Cairo.

 

Kamel said the programme had been
structured to enhance the confidence of counter-parties in the
settlement of international trade transactions for intra- and extra
Africa trade and to improve correspondent banking relationships.

 

He said that the programme became
necessary because the stringent conditions requirements had resulted in
the international banks reducing or withdrawing trade lines to African
banks.

 

He said that Afreximbank had aided in
confirming banks that had risk capital and capacity constraints to
support trade finance transactions.

 

Kamel said that the new trade
facilitation programme packaged in consultation with executives from 24
banks and a representation from the Korean Exim Bank would save and
transform African trade.

 

“The programme will enhance confidence
among African banks and boost Egypt-Africa trade and intra-African
trade, thereby decreasing the trade finance gap in the continent due to
stringent regulations and high compliance costs,”
Kamel said.

 

According to him, the participating banks
include Abu Dhabi Islamic Bank, Ahli United Bank (Egypt), Al Ahli Bank
of Kuwait, Alex Bank, Arab Bank, Arab International Bank, Arab
Investment Bank, Attijariwafa Bank, Banque du Caire,
Banque Misr;Blom Bank; Commercial International Bank and Credit
Agricole Egypt.

 

Others are Egyptian Gulf Bank; Emirates
NBD, Export Development Bank of Egypt; First Abu Dhabi Bank; Mashreq;
National Bank of Egypt, QNB Al Ahli, Societe Arabe Internationale de
Banque, Suez Canal Bank, The United Bank and Union
National Bank.