Afreximbank to grow intra-African trade financing to $40bn by 2026

African Export-Import Bank (Afreximbank) has unveiled plans to boost its financing for intra-African trade, targeting an increase from $20 billion in 2021 to $40 billion by 2026.

The announcement was made by Mr. Haytham ElMaayergi, Afreximbank’s Executive Vice President of Global Trade Bank, at the African Caucus Meeting of the World Bank Group and the International Monetary Fund (IMF), held recently in Abuja.

Mr. ElMaayergi was represented Prof. Benedict Oramah, President and Chairman of the Board of Afreximbank, at the event.

The meeting, which brought together finance ministers and Central Bank Governors from across Africa, focused on the theme “Facilitating Intra-African Trade: Catalyst for Sustainable Development in Africa.” The aim was to identify key challenges in achieving full continental integration and to engage in strategic dialogues for sustainable solutions.

ElMaayergi highlighted Afreximbank’s longstanding role as a leader in promoting intra-African trade since its establishment. He revealed that the bank had committed $1 billion to support the AfCFTA Adjustment Fund and provided a $10 million grant to facilitate the fund’s creation and operation. This support underscores Afreximbank’s dedication to the African Continental Free Trade Area (AfCFTA) and its broader economic goals.

In addition, Mr. ElMaayergi outlined Afreximbank’s collaborative efforts with the AfCFTA Secretariat and the African Union Commission (AUC) to advance several key initiatives, including the Pan-African Payments and Settlements System, the African Trade Gateway, and the Afreximbank African Collaborative Transit Guarantee Scheme.

ElMaayergi acknowledged Nigeria’s crucial role as a founding member and a significant shareholder of Afreximbank. He emphasized that the bank has been instrumental in supporting Nigeria’s development agenda, with over $40 billion approved for Nigerian public and private sector entities since its inception in 1993. Current projects in Nigeria include the African Medical Centre of Excellence and the Afreximbank African Trade Centre.

He also addressed the broader landscape of continental multilateral financial institutions designed to fill critical financing gaps and facilitate trade. ElMaayergi noted the launch of the Alliance of African Multilateral Financial Institutions (AAMFI) in collaboration with the AUC during the 37th Ordinary Session of the AU Assembly in Addis Ababa in February. AAMFI aims to enhance the effectiveness of these institutions and support Africa’s financial framework and Agenda 2063.

ElMaayergi called on the meeting participants to reaffirm their support for these institutions, emphasizing the importance of maintaining the special privileges and immunities granted to them, including preferred creditor status. He urged the World Bank and IMF to work closely with AAMFI to address the continent’s development challenges and to uphold treaty obligations made to these institutions.

The Alliance of African Multilateral Financial Institutions (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, and PTA Reinsurance.