Afreximbank expands Trade Finance Intermediary Initiative
By Chris Ndibe
The African Export-Import Bank (Afreximbank) says it increased its Trade Finance Intermediaries (TFIs) to more than 65 in 30 African countries in 2020 with more to be approved in 2021.
In a statement issued on Tuesday in Cairo, Egypt, the organisation said TFI was a key component of the bank’s business model, which enables a smoother delivery of its initiatives and credit solutions.
It added that in line with its charter and mandate, Afreximbank delivers its products and services with and through central banks, commercial banks and other eligible bank and non-bank financial institutions.
“The TFIs also act as Local Administrative Agents for Afreximbank’s facilities.
“The bank has put in place the TFI initiative to establish lasting relationships with these partner financial institutions.”
It said that new guidelines for appointing TFIs were introduced in 2017 and as a result, Afreximbank had strengthened their role in assisting it reach eligible exporters and importers in Africa and beyond.
Accredited according to rigorous criteria, the TFIs are trained to understand Afreximbank’s mandate, strategy, process and procedures.
The further expansion of the initiative enlarges the accredited network of financial institutions that can work alongside the bank to facilitate the transformation and development of trade across Africa, it said.
“The local presence and knowledge of TFIs ideally positions them to play an important role in delivering Afreximbank’s credit solutions.
“TFIs are also instrumental in helping to ensure the success of Afreximbank’s initiatives such as the newly launched MANSA repository platform, which provides a centralised pan-African source for Due Diligence.
“Know-Your Customer data and the Pan African Payment and Settlement System (PAPSS), which will enable intra-African trade and commerce payments to be made in African currencies in furtherance of the goals of the African Continental Free Trade Agreement (AfCFTA).”
The bank said that in order to identify its partner financial institutions, its official Seal of Accreditation as a TFI served as a badge of honour.
It was also a symbol of excellence acknowledging and empowering their contribution to continent-wide initiatives, commitment to the development of Africa and the delivery of credit solutions at the local level.