The African Development Bank (AfDB) under the leadership of Mr. Akinwumi Adesina, the President of the AfDB, the bank operates to spur sustainable economic development and social progress in its regional member countries (RMCs), thus contributing to poverty reduction.
This $450 million awarded to Afreximbank will help to expand Afreximbank’s risk bearing capacity for the confirmation of letters of credit and to support more trade through the provision of increased liquidity to local financial institutions and corporate entities in Africa.
It was further disclosed by the bank that the project is aligned with African Development Bank (AfDB)’s five priority goals- light up and power Africa; feed Africa; industrialise Africa; integrate Africa; and improve the quality of life for the people of Africa.
“It will boost intra-Africa trade, promote regional integration, and contribute to the reduction of the trade finance gap in Africa. Given Afreximbank’s commitment to helping African economies diversify their exports, strengthen trade value chains and promote value addition, this facility will contribute to macroeconomic resilience in at least 28 countries.
“It will provide financing to more than 100 financial institutions and corporates and support at least $2.8 billion of trade in Africa over a four-year period. “AfDB’s additionality in this project stems from its ‘AAA’ rating that will enable Afreximbank enhance its trade finance confirmation capabilities; its ability to avail medium-term liquidity support to Afreximbank to provide appropriate trade finance to local banks and corporates entities in Africa; and its demonstrable appetite for Africa risk,”