Afreximbank - Afrikan Heroes

Afreximbank wins Debt Deal of the Year Award

August 27, 2020

Prof Benedict Oramah, president Afriexim bank

The African Export-Import Bank (Afreximbank), Africa’s foremost multilateral trade finance institution, was today announced winner of the Debt Deal of the Year Award at the 14^th Annual African Banker Awards 2020 held virtually. The awards recognize institutions and individuals driving growth and development in Africa and creating new economic opportunities for citizens and communities across the continent.

The Debt Deal of the Year Award was granted to Afreximbank for a EUR 1 billion syndicated senior loan facility arranged with Credit Suisse for Nigeria’s Bank of Industry. The funds have supported the Bank of Industry’s work expanding, diversifying and modernizing Nigeria’s industrial sector. Having originally been sized at EUR 750 million, the debt raising was successfully upsized to EUR 1 billion through a general syndication that secured liquidity from over 20 investors. In its role as Coordinating Mandated Lead Arranger and Bookrunner, Afreximbank played an integral role in attracting a wide diversity of investors ranging from African and non-African banks and financial institutions as well as development finance institutions.

In his acceptance speech, Amr Kamel, Afreximbank’s Executive Vice President for Business Development and Corporate Banking, who received the Award on behalf of the Bank said that the Bank of Industry deal was a major step on the path to a strong and resilient African economy.

“Afreximbank is honoured to receive this award. We remain committed to being a significant player in the African syndicated loan market and continuing to attract capital to the African continent. These funds can help close the continent’s trade and infrastructure gaps and unlock the potential of an African economy driven by diverse industries, regional integration and shared prosperity,” he added.

The African Banker Awards have previously recognized Afreximbank for its strengthening of the African financial sector and integral role in the expansion of intra-African trade, awarding the institution the prestigious title of African Bank of the Year in 2019.

Kelechi Deca

Kelechi Deca has over two decades of media experience, he has traveled to over 77 countries reporting on multilateral development institutions, international business, trade, travels, culture, and diplomacy. He is also a petrol head with in-depth knowledge of automobiles and the auto industry

Moody’s Affirms Afreximbank’s Credit Rating at Baa1

July 19, 2020

The African Export-Import Bank (Afreximbank), Africa’s foremost multilateral trade finance institution, announces that the global credit ratings agency Moody’s, affirmed the Bank’s long-term credit rating at Baa1, with a stable outlook. The agency determines its rating for supranationals based on three criteria: capital adequacy, liquidity, and funding and strength of member support. Moody’s notes that Afreximbank’s credit profile is “supported by its collateralized trade finance business model, with a short average asset maturity and a relatively well-diversified loan portfolio that allows it to respond flexibly to the coronavirus crisis.”

Professor Benedict Oramah, president, Afriexim Bank

The report adds that “the stable outlook is supported by the Bank’s successful equity-raising performance and its track record of adapting its strategy to challenges in the operating environment of member countries without undermining its asset-quality performance.”

Speaking on the development, Prof. Benedict Oramah, President of Afreximbank, said that “Afreximbank is delighted by the outcome of Moody’s credit review, considering the challenges posed by COVID-19. As well as having a profit-oriented business model, the Bank has a developmental mandate and a responsibility to all its members’ states to intervene in times of emergency. We have acted decisively with the launch of the Pandemic Trade Impact Mitigation Facility (PATIMFA). We look forward to continuing supporting the Bank’s member countries in a prudent and impactful manner.”

Kelechi Deca

Kelechi Deca has over two decades of media experience, he has traveled to over 77 countries reporting on multilateral development institutions, international business, trade, travels, culture, and diplomacy. He is also a petrol head with in-depth knowledge of automobiles and the auto industry

Prof. Benedict Oramah Re-appointed as Afreximbank President

June 14, 2020

Prof. Benedict Oramah, President of the African Export-import Bank

Nigeria’s Prof. Benedict Okechukwu Oramah has been re-elected as the President of African Export-Import Bank (Afreximbank). The shareholders meet today to re-elect him for a second 5-year term. The decision was announced in Cairo following Afreximbank’s 27th Annual General Meeting of Shareholders which was held by circulation of resolutions due to the COVID-19 pandemic situation.

In an acceptance statement released shortly thereafter, President Oramah told Shareholders that the Bank’s ultimate goal under his second term of office is the realisation of Africa’s strategic ambition to create an integrated market. “We want an Africa where the foundations of the African Continental Free Trade Agreement (AfCFTA) are laid expeditiously so that the 84,000 kilometres of borders that have divided us for ages can begin to come down,” said prof. Oramah who added that AfCFTA would “drive the industrialisation of Africa, support the emergence of regional value chains, turn Africa’s creative and cultural assets into engines of growth, grow jobs for the continent’s youth, convey respect to Africans wherever they may be and better prepare the continent to compete more effectively in the global markets.”

Prof. Oramah highlighted that between 2015 and 2019, Afreximbank disbursed more than US$30 billion in support of African trade with over US$15 billion channeled towards the financing and promotion of intra-African trade. “We will aim to double intra-African trade financing so that by the end of my term, it will constitute no less than 40% of the Bank’s total assets, with aggregate disbursements, on a revolving basis, over the 5 years exceeding US$30 billion,” he announced.

In office since 2015, Prof. Oramah’s re-appointment was one of the key decisions taken by shareholders during the Bank’s 2020 General Meeting. A resolution proposing the re-election of Mr. Stefan-Luis Francois Nalletamby as a director representing Class “A” Shareholders and Mr. Kee Chong Li Kwong Wing as a director representing Class “B” Sharefolders was also approved by the meeting.

In addition, the 2019 audited accounts were approved, as well as the proposal to raise an additional US$500 million in equity within Afreximbank’s current Strategic Plan dubbed “IMPACT 2021-Africa transformed”. The approval to raise additional equity was in recognition that an amount of US$1 billion earlier authorized to be mobilized had almost been fully raised. “I make a commitment that with your support, the Bank will remain well capitalised throughout my term of office and beyond. We will continue our efforts to diversify sources of equity to include the markets while ensuring that the Bank’s development focus remains unchanged,” President Oramah assured the Bank’s Shareholders.

Kelechi Deca

Kelechi Deca has over two decades of media experience, he has traveled to over 77 countries reporting on multilateral development institutions, international business, trade, travels, culture, and diplomacy. He is also a petrol head with in-depth knowledge of automobiles and the auto industry

New Growth Opportunities for African Businesses

June 3, 2020

Small-business owners and young entrepreneurs across Africa stands to benefit from the collaborative efforts between the African Import and Export Bank (Afreximbank) and the International Trade Centre to prepare African businesses to trade with other African countries as part of the new African Continental Free Trade Area (AfCFTA). The programme is being launched as the new free-trade area comes on stream and amid the economic strain of climate change and the coronavirus pandemic.

The training will give business owners the knowledge and skills they need to engage effectively in cross-border trade under terms of the emerging free-trade area for Africa. Intra-African trade is structurally low at 15% (compared to Europe at nearly 70%, for example), and the AfCFTA will open a market of 1.2 billion people. “Against the backdrop of the current COVID-19 health and economic crisis, African micro, small and medium enterprises (MSMEs) need support to take full advantage of the continental market,” ITC acting Executive Director Dorothy Tembo said. “Through this partnership, African businesses will have the opportunity to learn, plan and succeed in growing their business by taking full advantage of the AfCFTA.”

Kanayo Awani, Managing Director of Afreximbank’s Intra-African Trade Initiative, said that the initiative was necessary because increasing intra-African trade through exports of goods and services by small and medium-sized enterprises (SMEs) was the cornerstone of the AFCFTA. “It signals an optimal strategy to aid businesses and develop regional value chains, which have become more relevant with the advent of the COVID-19 pandemic,” she said.“Our joint initiative with ITC is a proactive way to support the implementation of the AfCFTA and to provide SMEs with the tools to respond more effectively to the economic and social challenges presented by the global pandemic,” added Ms. Awani.

The training programme, run via ITC’s popular multilingual SME Trade Academy platform, under the auspices of the Afreximbank Academy (AFRACAD), will be piloted in Nigeria, Rwanda, and Côte d’Ivoire and be launched in close collaboration with trade promotion organizations of the three selected pilot countries. Afreximbank and ITC will work toward increasing opportunities for small-business owners to export and supporting countries to achieve their overall trade goals at the regional, continental and global levels.

In a similar development, the ITC is also partnering with Afreximbank to support South Sudan in increasing its trade competitiveness, boosting its exports through economic diversification and creating investment opportunities through the development of a trade and investment promotion strategy. The promotion strategy will identify several priority sectors with a high potential for trade and increasing job opportunities − especially for women and young people. ITC will work with the country’s ministry of trade, investment agencies and private-sector associations to ensure the strategy provides sustainable solutions for the country’s development.

Kelechi Deca

Kelechi Deca has over two decades of media experience, he has traveled to over 77 countries reporting on multilateral development institutions, international business, trade, travels, culture, and diplomacy. He is also a petrol head with in-depth knowledge of automobiles and the auto industry

African Countries Get $3-Million COVID-19 From Afreximbank

May 2, 2020

Afreximbank President Prof. Benedict Oramah

The African Export-Import Bank (Afreximbank) has announced a $3-million grant to complement continental efforts to combat the COVID-19 pandemic. Afreximbank President Prof. Benedict Oramah,who made the announcement in Cairo, said that the grant was in response to a request by African heads of state, through the auspices of the African Union Chair Person, Cyril Ramaphosa, President of South Africa, for the mobilisation of resources to address the pandemic.

He said that a significant proportion of the grant would go to the COVID-19 Special Fund set up by the African Union (AU) as well as to the African Center for Disease Control (Africa CDC). “We hope that our modest contribution will help to address some of the immediate needs. We encourage other African banks, funds, corporations and charitable organisations to also contribute to the relief effort,” said Prof. Oramah, who noted that Afreximbank was working with the United Nations Economic Commission for Africa (ECA) and the AU to help mobilise grant funding for the COVID-19 mitigation responses.

Highlighting the need for wide institutional support for the COVID-19 response effort, he said that “no one country or institution will be able to rise to the challenge of the pandemic on its own.” Afreximbank’s grant support comes in addition to several initiatives the Bank is taking to support the effort in fighting the pandemic, such as the $3-billion Pandemic Trade Impact Mitigation Facility (PATIMFA), which it launched in March, to help African countries deal with the economic and health impacts of the COVID-19 pandemic.

The Bank has also set aside an amount of $200 million for use in financing the production of COVID-19 equipment and supplies within Africa. President Oramah said that the resource constraints and urgent nature of interventions on the ground required significant grant financing to ensure timely support for emergency interventions in combating the pandemic. Afreximbank has a history of intervening in support of African countries in times of crisis. In November 2014, the Bank contributed $1 million to the effort to combat the outbreak of the Ebola virus disease which affected several countries in West Africa. In 2019, Afreximbank donated $1.5 million to countries in Southern Africa to support relief efforts for victims of Tropical Cyclone Idai.

Kelechi Deca

Kelechi Deca has over two decades of media experience, he has traveled to over 77 countries reporting on multilateral development institutions, international business, trade, travels, culture, and diplomacy. He is also a petrol head with in-depth knowledge of automobiles and the auto industry

Afreximbank Cross $1 billion Income Mark

April 9, 2020

The African Export-Import Bank (Afreximbank) has crossed the $1billion mark for the first time in its history. This was made known today during the presentation of its audited financial statements for the year ended 31 December 2019, which shows strong and consistent growth, with total comprehensive income of $324.2 million.

The results, which reflected a net income of $313.3 million, 14.3 per cent increase over the 2018 performance of $275.9 million, were achieved mainly due to higher operating income of $622.5 million compared to $489.8 million in 2018.Afreximbank’s total assets grew by 7.6 per cent from $13.42 billion on 31 December 2018 to $14.44 billion as at 31 December 2019, explained mainly by the solid growth in net loans and advances.

The financial statements show a 29.7 per cent growth in gross income, which reached $1.1 billion in 2019 compared to $813.9 million 2018, putting the Bank above the $1 billion mark for the first time. Bank President, Prof. Benedict Oramah, expressed satisfaction with the results, noting that the performance exceeded strategic plan targets despite a global operating environment characterized by economic uncertainties.

He said that the Bank had “continued to deliver the objectives of its current five-year strategic plan, dubbed IMPACT 2021, by prioritizing initiatives aimed at promoting and financing intra-African trade”.Addressing concerns about COVID-19, whose emergence early in 2020 has raised concerns about a global recession, he said that Afreximbank was taking necessary steps to manage the impact, particularly on the loans and advances from customers that may be impacted, adding, “Afreximbank is making arrangements to support its member countries in need”.

Kelechi Deca

Kelechi Deca has over two decades of media experience, he has traveled to over 77 countries reporting on multilateral development institutions, international business, trade, travels, culture, and diplomacy. He is also a petrol head with in-depth knowledge of automobiles and the auto industry

Afreximbank Launches N300 Billion Naira Medium-Term Note Programme

January 28, 2020

Prof. Benedict Oramah, the Bank's President

History was made in Lagos today as African Export-Import Bank (Afreximbank) signed documents to complete the registration of the first ever local currency fund raising programme in Nigeria.

The 300-billion Naira medium-term note with the Securities and Exchange Commission under the Bank’s local currency programme will boost Nigeria’s capital market and unlock the door to a new value-added relationship between Afreximbank and Nigeria.

According to Prof. Benedict Oramah, the Bank’s President, “over the last few years, many of the Bank’s key clients had made requests for local currency funding, saying that that Afreximbank designed and launched a local currency programme in 2016 with the primary aim of providing financing to African entities in major domestic and regional supply chains, particularly those that did not generate hard currency receivables”.

“In addition, we believed that using the debt capital markets in our member countries to raise the funding would contribute to the development of capital markets in those countries,” explained the President.

He described the timing of the note as opportune as Africa geared for commencement of trading under the African Continental Free Trade Agreements (AfCFTA), noting that there would be need to create productive capacities at national and regional levels and some businesses would require retooling. Others would need to expand key production units and secure reliable sources of local raw materials.

“Adequate and competitive local currency funding, through a pre-export financing arrangement will help these entities to create the necessary capacities to produce the goods required for export markets,” Prof. Oramah said. “The Bank’s local currency funding programme is part of the broad set of programmes designed to ensure Africa’s preparedness for the commencement of the AfCFTA. More importantly, it is part of Afreximbank’s objective of expanding the use of local currencies in the conduct of intra-African trade, as, together with the Bank’s Pan-African Payment and Settlement System, it will ensure that all foreign currency risks that have inhibited intra-regional trade are minimized considerably.”

Also speaking, Dr. Demola Sogunle, Chief Executive, Stanbic IBTC Bank PLC, said that the Afreximbank initiative was another noteworthy example of global best practice in treasury management and innovation to stay abreast of evolving market conditions.

“The establishment of the bond programme will aid in stimulating the expansion and development of Nigeria through Afreximbank’s intervention in various sectors of the Nigerian economy,” said Dr. Sogunle.

Expressing Stanbic IBTC Capital’s commitment to developing the Nigerian capital markets and driving financial innovation by advising clients on staying ahead of changing times, he said that the bank was pleased to assist Afreximbank in shaping its funding strategy.

Following approval of the Local Currency Funding Programme by the Afreximbank Board of Directors in response to rising demand for financing facilities denominated in local currencies from the West Africa Economic and Monetary Union, Rand area countries, Nigeria, East Africa and some parts of North Africa, the Bank, in 2017, began the process of registering the first note programme in the Nigerian Naira. Under the Nigeria Naira Note Programme, dubbed “Project Ramesses”, Afreximbank, acting as an “Issuer” of notes, seeks to establish a 300,000,000,000-Naira Medium-Term Note Issuance Programme and the issuance and offering of subsequent notes, subject to approved pipeline of Naira facilities.

Afreximbank appointed Stanbic IBTC Capital Limited as Lead Issuing House/Bookrunner and Chapel Hill Advisory Partners Limited, Lead Capital PLC, PAC Capital Limited and Vetiva Capital Management Limited as joint Issuing Houses/Bookrunners. The Bank also appointed Stanbic IBTC Trustees to be responsible for acting on behalf of the bondholders who hold legal title to the bonds and Africa Prudential Registrars as registrar to keep the register of the bonds once issued.

Afreximbank plans to roll out similar programmes in the Francophone West Africa, Southern Africa and Eastern Africa capital markets as demand for local currency funding from those markets materialise.

Kelechi Deca

Kelechi Deca has over two decades of media experience, he has traveled to over 77 countries reporting on multilateral development institutions, international business, trade, travels, culture, and diplomacy. He is also a petrol head with in-depth knowledge of automobiles and the auto industry

Projects to Support Transformation of Cameroon’s Economy Identified by Afreximbank

December 14, 2019

The government of Cameroon has intensified efforts aimed at boosting its economy to tackle the rising unemployment rate caused by its prolonged political crisis and security challenges. In this regard, it is working in partnership with the African Export-Import Bank through a process of identifying projects in the key sectors to assist the country to achieve a rapid transformation of the economy through trade. This was made known the Global Head of Client Relations of the Bank, Rene Awambeng who was in Douala, Cameroon, to present the Bank’s products, programmes and facilities to the business community.

Global Head of Client Relations of the Bank, Rene Awambeng

Mr. Awambeng informed the Cameroonian business community that Afreximbank was committed to assisting the country to execute priority trade enabling infrastructure. The Bank also promised to support the country to expand its manufacturing capacity through the development of logistics, industrial parks and processing plants for key commodities, in addition to providing trade finance for the import of capital goods to support industrialization, he said. Other areas of support include facilitation of export of processed/manufactured goods and support to Cameroonian businesses to access regional and continental markets, especially in the context of the African Continental Free Trade Area (AfCFTA).

Over the years, Afreximbank had financed the construction, expansion and refurbishment of trade enabling infrastructure across the continent, stated Mr. Awambeng. It was also supporting African countries to diversify their economies away from dependence on mono-export, by partnering with governments and international manufactures/processors to promote value addition, implementing financing and non-financing programmes to prepare businesses to take advantage of the AfCFTA, and providing support to local banks meet trade finance obligations.

Celestin Tawamba, President of Le Groupemen Inter patronal du Cameroun (GICAM), the leading network of business leaders in Cameroon, said that the major challenges confronting business promoters in the Central Africa region included difficulty in mobilising financing for projects and lack of access to trade information.

The roadshow was, therefore, an opportunity for the members of the private sector to exchange ideas with a key financial institution in order to obtain information about available solutions that could assist in addressing the specific difficulties of businesses in the region, he said.

Responding, Dr. Fritz Ntone Ntone, the chief representative of the Government Delegate to the Douala City Council, said that, with the entry into force of the AfCFTA, the programmes and facilities from Afreximbank presented major opportunities for businesses in Cameroon and the Central Africa region to engage in intra-African trade. The roadshow featured presentations on the various products, programmes and facilities offered by Afreximbank to promote and support trade across Africa.

More than 250 business leaders from all the key sectors of the Cameroonian economy participated in the roadshow which was hosted in the offices of GICAM.

Kelechi Deca

Kelechi Deca has over two decades of media experience, he has traveled to over 77 countries reporting on multilateral development institutions, international business, trade, travels, culture, and diplomacy. He is also a petrol head with in-depth knowledge of automobiles and the auto industry

African Bankers Attend Afreximbank Trade Finance Seminar in Durban

November 5, 2019

Senior management of commercial and investment banks across the continent of Africa are presently attending the 2019 Afreximbank Trade Finance Seminar and Workshop which opens today in Durban, South Africa with Mr. Amr Kamel, Executive Vice President in charge of Business Development and Corporate Banking at the African Export-Import Bank (Afreximbank) imploring participants to make the best use of the opportunities the seminar presents. Mr. Kamel noted that the Bank wanted to ensure that African banks and bankers were well-equipped to deal with the risks in financing trade under a difficult politico-economic environment and changing trade counterparties.

Mr. Amr Kamel, Executive Vice President in charge of Business Development and Corporate Banking at the African Export-Import Bank

Welcoming the delegates to the event, the Premier of Kwazulu-Natal Province, South Africa, Sihle Zikalala, said that the province aimed to position itself as the gateway to South Africa and the entire Southern African region. He pointed out that the Province aspires to act increasingly as a transmission belt between global and regional markets and production facilities, he explained, adding that the government was working to develop a robust economy that could sustainably create employment, fight poverty and become more globally competitive.

In his address at the opening ceremony, Mr. Kamel said that the seminar and workshops, organised by Afreximbank in collaboration with the South African province of Kwazulu-Natal, was part of the Bank’s strategy to develop and strengthen trade finance capacity in Africa. The training had been structured to ensure that participants acquired the capacity to structure bankable trade finance deals of varying levels of complexity, he stated.

“As Banks, we all play a critical role in promoting trade,” said Mr. Kamel. “We must do this by managing the risks for traders as well as by facilitating payments while bridging the cashflow gaps that characterize international trade.” He said that 2019 would go down as a watershed in Africa’s history, being the year when the continent came together to affirm its commitment to addressing its economic and social problems through the launch of the operational phase of the African Free Trade Continental Agreement (AfCFTA). “This should provide traders across Africa with preferential trading arrangements to enable them to enhance the level of intra-African trade and enhance economic growth for our countries,” he said.

Earlier, Nomusa Dube-Ncube, Member of the Kwazulu-Natal Executive Council responsible for Economic Development, Tourism and Environmental Affairs, welcomed the seminar participants to Durban. Also addressing the opening ceremony was Belinda Scott, Deputy Mayor of Ethikwini.

The Afreximbank Trade Finance Seminar and Workshop, now in its 20^th edition, is being attended by more than 200 participants, including senior executives from African banks, financial institutions, regulatory institutions, hedge funds, Africa country funds, venture capital institutions, corporate entities engaged in trade, manufacturing and privatized infrastructure projects, Afreximbank’s trade finance and project finance intermediaries, African law firms and insurance firms. The Seminar segment will end on 6 November and will be followed by a factoring workshop on 7 November.

Kelechi Deca

Kelechi Deca has over two decades of media experience, he has traveled to over 77 countries reporting on multilateral development institutions, international business, trade, travels, culture, and diplomacy. He is also a petrol head with in-depth knowledge of automobiles and the auto industry.

Afreximbank Floats African Cotton Initiative

October 21, 2019

The African Export-Import Bank (Afreximbank) is developing an African Cotton Initiative (AFRICOTIN) to help to catalyse the African cotton sector, Kanayo Awani, Managing Director of the Bank’s Intra-African Trade Initiative, has announced.

Kanayo Awani, Managing Director of the Bank’s Intra-African Trade Initiative

Speaking during the launch of the African Corner at the World Cotton Day organised by the World Trade Organization in Geneva , Ms. Awani said that the initiative would involve upstream interventions boosting production of cotton on the continent and downstream interventions promoting and financing the consumption of cotton products.

She noted that the cotton value chain provides income for millions of people in Africa, especially those living in rural areas, and represented an important source of foreign exchange for many countries.

Afreximbank had a cotton pipeline of about 400 million Euros, she announced, including $195 million dollars in textile and cotton Parks in Burkina Faso and textile and garments industrial parks in Nigeria.

The African Corner, sponsored by Afreximbank, allowed the Bank to showcase its support for the African cotton value chain and for the African fashion and design industry.

The African Corner is a section of the WTO premises dedicated to African Cotton products and was designed to give exposure and recognition to African cotton and cotton stakeholders. The corner is also being used to develop collaboration with the private sector and seek investors for cotton-related industries and production in Africa.

Observance of the World Cotton Day followed a United Nations resolution sponsored by Benin, Burkina Faso, Chad and Mali proclaiming 7 October as World Cotton Day. The four countries, also known as the Cotton-4, are co-sponsors of the Cotton Sectorial Initiative which aims to improve the international cotton trading system.

Cotton is produced in 75 countries, including many least-developed countries where production and processing are important contributors to economic stability and job creation.

Also addressing participants in Geneva was Arancha González, Executive Director of the International Trade Centre, who said that cotton was at the heart the Centre’s efforts to ensure sustainable development through trade in Africa.

Kelechi Deca

Kelechi Deca has over two decades of media experience, he has traveled to over 77 countries reporting on multilateral development institutions, international business, trade, travels, culture, and diplomacy. He is also a petrol head with in-depth knowledge of automobiles and the auto industry.