By Gabs Mia
Kinshasa, DRC: African Export-Import Bank (Afreximbank) plans to double its financing of intra-African trade from US$20 billion in 2021 to US$40 billion by 2026, Mr. Haytham ElMaayergi, Afreximbank’s Executive Vice President, Global Trade Bank, has said.
At the African Caucus Meeting of the World Bank Group and the International Monetary Fund (IMF) held in Abuja from August 1 to 3, 2024, Mr. ElMaayergi addressed participants and guests on behalf of Prof. Benedict Oramah, President and Chairman of the Board of Directors of Afreximbank.
The meeting focused on facilitating intra-African trade as a catalyst for sustainable development in Africa. Attended primarily by ministers of finance and Central Bank Governors from across the continent, the gathering aimed to identify key challenges hindering Africa’s full integration and engage in strategic dialogues to formulate sustainable solutions.
Since its inception, Afreximbank has been an unwavering champion of facilitating intra-African trade, according to Mr. ElMaayergi. Afreximbank has dedicated US$1 billion to support the AfCFTA Adjustment Fund. Additionally, a US$10 million grant has been allocated to facilitate the establishment and operationalization of the fund.
“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.
Recognizing the presence of multiple continental multilateral financial institutions established to address critical financing gaps in Africa and facilitate trade, Mr. ElMaayergi emphasized the need to enhance their effectiveness. In collaboration with the African Union Commission (AUC), the Alliance of African Multilateral Financial Institutions (AAMFI) was launched on the sidelines of the 37th Ordinary Session of the Assembly of Heads of State and Government of the African Union in Addis Ababa in February. The AAMFI’s main objective is to empower these institutions with privileges and capitalization, enabling them to fulfill their mandates more effectively.
ElMaayergi noted that the AU had recognized 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.</p
