(MENAFN- Daily News Egypt) The African Export-Import bank (Afreximbank) plans to double its financing of intra-African trade from $20bn in 2021 to $40bn by 2026, according to Haytham ElMaayergi, the bank's Executive Vice President, Global Trade Bank.
ElMaayergi made the announcement at the African Caucus Meeting of the World Bank Group and the International Monetary Fund (IMF) in Abuja from Aug. 1-3, 2024. He represented Prof. Benedict Oramah, President and Chairman of the Board of Directors of Afreximbank, at the meeting attended by African finance ministers and Central Bank Governors.
The meeting, themed“Facilitating Intra-African Trade: Catalyst for Sustainable Development in Africa,” aimed to identify key challenges facing Africa in achieving full integration and engage in strategic dialogues to engender sustainable solutions.
ElMaayergi emphasized Afreximbank's commitment to facilitating intra-African trade since its founding, highlighting the bank's $1bn contribution to the AfCFTA Adjustment Fund and its $10m grant to facilitate the fund's establishment and operation.
“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 said.
ElMaayergi also noted Nigeria's role as a key founding member and second-largest shareholder of Afreximbank, stating that the bank has played a significant role in supporting the country's development agenda.
“Since inception in 1993, the Bank has approved over $40bn in support of Nigerian public and private sector entities,” he said, adding that Afreximbank is currently implementing several of its flagship continental initiatives in the country, including the African Medical Centre of Excellence and the Afreximbank African Trade Centre.
To enhance the effectiveness of African multilateral financial institutions, ElMaayergi highlighted the launch of the Alliance of African Multilateral Financial Institutions (AAMFI) in collaboration with the AUC. AAMFI was launched 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 has recognized African multilateral financial institutions as crucial for strengthening the continental financial framework and advancing the AU's Agenda 2063. He called on meeting participants to reaffirm their commitment to these institutions and urged the World Bank and the IMF to work with AAMFI to address 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 ElMaayergi.
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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