A USD 4 billion Ukraine Crisis Adjustment Trade Financing Programme for Africa (UKAFPA) has been approved.
African Export-Import Bank (Afreximbank) is a Pan-African multilateral financial institution mandated to finance and promote intra-and extra-African trade. Geopolitical events over the last few months have had a significant impact on food security in Africa.
On 31 March 2022, a USD 4 billion Ukraine Crisis Adjustment Trade Financing Programme for Africa (UKAFPA) was approved by the Board of Directors of the African Export-Import Bank (Afreximbank), according to a press release issued on the same day.
“I hope that UKAFPA will play a major role in building resilience in nutrition and food security on the African continent, in line with the theme of the 36th AU Summit.” H.E. Macky Sall, President of the Republic of Senegal and current Chairperson of the African Union.
According to the United Nations Conference on Trade and Development, the impact of the war in Ukraine on trade and development in Africa is worsening as food, fuel and fertiliser prices rise.
UNCTAD further noted the following two important facts:
- The Russian Federation and Ukraine account for 53 per cent of the share of world trade in sunflower oil and seeds and 27 per cent of the share of world trade in wheat.
- Africa imported $3.7 billion worth of wheat (32 per cent of total African wheat imports come from the Russian Federation and 12 per cent of total African wheat imports come from Ukraine) between 2018 and 2020
Professor Benedict Oramah, President and Chairman of the Board of Directors of Afreximbank, reassures us, “This initiative will contribute immensely to averting social anxiety and upheaval that may arise from looming food shortages and high costs of fertiliser and petroleum products.”
ABiQ’s Hugue Nkoutchou was interviewed recently on Cameroon’s national television. Click here to see the interview (in French).
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