The African Export–Import Bank (Afreximbank) board of directors renewed a $1 billion facility and $10 million grant to help African countries trade effectively under the African Continental Free Trade Area (AfCFTA).
This new $1bn facility will be used to mobilise concessional financing and commercial financing. The $10m grant will be used to address tariff revenue losses and assist countries in implementing the various AfCFTA protocols.
Renewed facility and new funding
“Afreximbank is delighted to have been appointed the Fund Manager of the AfCFTA Adjustment Funds following the extensive collaborative work it has done with the AfCFTA Secretariat and the African Union Commission during the past few years. The renewal of the US$1 billion facility and the US$10 million grant funding represents resounding entrustment by our Board of Directors of these efforts. These facilities will again be contributing to making a great idea a reality,” said Professor Benedict Oramah, President, and Chairman of the Board of Directors of Afreximbank.
Mobilise concessional financing and commercial financing
According to a July 2022 press release, the new $1 billion Afreximbank facility will be used to mobilise concessional financing (general fund) and commercial financing (credit fund). The $10 million grant (based fund) will be used to address tariff revenue losses and assist countries in implementing the various AfCFTA protocols.
“The endorsement by the Afreximbank Board brings the continent closer to operationalising the AfCFTA Adjustment Funds before the end of 2022. We urge other development partners and financial institutions to provide additional resources required under the Adjustment Funds to support the implementation of the AfCFTA,” said His Excellency, Mr. Wamkele Mene the Secretary General of the AfCFTA Secretariat.
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