African Export-Import Bank

Africa’s Trade Bank Gets Good rating With a “Stable” Outlook

August 23, 2022

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

Africa’s preeminent trade bank, African Export-Import Bank (Afreximbank) has announced that Japan Credit Rating Agency (JCR) has affirmed its long-term issuer rating of A- and maintained the “Stable” outlook. The affirmation of Afreximbank’s issuer rating is testament of the Bank’s ever strengthening credit profile and positions to continue to expand and escalate its interventions in Africa, in whose long-term economic development it plays a pivotal role.

JCR Rating Agency noted, in its assessment, the strategic role that Afreximbank’s current Sixth Strategic Plan (2022-2026) plays towards the Bank’s fulfilment and deliverance of its mandate, as well as its crucial work in support of initiatives aligned with the goals of the African Union (AU). Moreover, JCR identified strong shareholder support for Afreximbank’s operations, citing as evidence the healthy progression of capital increases since 2014 as well as the African Union supported US$6.5 billion General Capital Increase (GCI) approved by the Bank’s Board of Directors in June 2021. The credit rating agency further contended that the Bank’s solid earnings capacity would protect its financial base even if the economic impact of the Ukraine crisis worsens.

Speaking on the development, Afreximbank’s Executive Vice President in charge of Finance, Administration and Banking Services, Mr. Denys Denya, said that “The affirmation of Afreximbank’s A- rating, as well as JCR’s evident confidence in the Bank’s ability to deliver for its shareholders and defend its balance sheet in the long-term, represent important validations of our ongoing strategy and the Bank’s record of never incurring annual losses. Equipped with such a strong credit rating, Afreximbank can provide assurance to investors who support the Bank’s fundraising activities and attract funding at competitive terms.”

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

Silver Linen for African Automotive Industry with Afreximbank MoU

February 18, 2021

African automobile manufacturers are in for a great time as the African Export-Import Bank (Afreximbank) and the African Association of Automotive Manufacturers (AAAM) have entered into a Memorandum of Understanding (MoU) for the financing and promotion of the automotive industry in Africa. Prof. Benedict Oramah, President of Afreximbank and Mike Whitfield, President of AAAM and Managing Director of Nissan Africa, signed the MoU to formalize the basis for a partnership aimed at boosting regional automotive value chains and financing for the automotive industry while supporting the development of enabling policies, technical assistance, and capacity building initiatives.

Prof. Benedict Oramah, President of Afreximbank said that “the strategic partnership with AAAM will facilitate the implementation of the Bank’s Automotive programme which aims to catalyze the development of the automotive industry in Africa as the continent commences trade under the African Continental Free Trade Area (AfCFTA).”

Under the terms of the MoU, Afreximbank and AAAM will work together to foster the emergence of regional value chains with a focus on value-added manufacturing created through partnerships between global Original Equipment Manufacturers (OEM), suppliers, and local partners. The two organizations plan to undertake comprehensive studies to map potential regional automotive value chains on the continent in regional economic clusters, in order to enable the manufacture of automotive components for supply to hub assemblers.

To support the emergence of the African automotive industry, they will collaborate to provide financing to industry players along the whole automotive value chain. The potential interventions include lines of credit, direct financing, project financing, supply chain financing, guarantees, and equity financing, amongst others.

The MoU also provides for them to support, in conjunction with the African Union Commission and the AfCFTA Secretariat, the development of coherent national, regional and continental automotive policies, and strategies. With an integrated market under the AfCFTA, abundant and cheap labour, natural resource wealth, and a growing middle class, African countries are increasingly turning their attention to support the emergence of their automotive industries. Therefore, the collaboration between Afreximbank and AAAM will be an opportunity to empower the aspirations of African countries towards re-focusing their economies on industrialization and export manufacturing and fostering the emergence of regional value chains.

“The signing of the MoU with Afreximbank is an exciting milestone for the development of the automotive industry in Africa. At the 2020 digital Africa Auto Forum, the lack of affordable financing available for the automotive sector was identified as one of the key inhibiters for the growth and development of the automotive industry in Africa and having Afreximbank on board is a game changer and a hugely positive development,” commented David Coffey, CEO of AAAM.

“It is wonderful to have a partner that is as committed as the AAAM to driving the development and growth of our sector on the continent; this collaboration will ensure genuine progress for our industry in Africa,” added Mr. Coffey. Other areas covered by the MoU include working with the African Union and the African Organization for Standardization to harmonize automotive standards across the continent and developing an automotive focused training program for both the public and private sector.

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 to Promote Factoring for SME Financing in East Africa

February 25, 2020

Kanayo Awani, Managing Director, Intra-African Trade Initiative, Afreximbank

The African Export-Import Bank (Afreximbank) is set to promote the use of factoring to enhance access to financing for small and medium-sized enterprises (SMEs) in East Africa. This will form the focus at the Regional Conference on Factoring and Receivables Finance scheduled to take place on 27 and 28 February in Nairobi, Kenya. Organisers expect the event to attract about 120 senior executives from factoring companies, banks and non-bank financial institutions, government agencies, consulting firms and IT providers.

They will be joined by regulators, lawyers and insurers for the sharing of best practices in regulatory and legal regimes, innovation and credit insurance services that can facilitate the growth of factoring in support of SMEs.

According to information from Afreximbank and FCI, factoring can provide more financing to SMEs than traditional lending channels if the knowledge and capability are developed and shared.

The Conference is aimed at creating awareness, building capacity and providing opportunities for networking in the factoring industry. It will feature presentations, panel discussions and success stories and will allow attendees to discuss the current state and challenges of the factoring industry. Discussions will also cover products and market development.

“Promoting Intra-African Trade and facilitating Industrialization and Export Development are key pillars of Afreximbank’s current strategy. We believe that factoring will support their implementation capacity in the context of the untapped opportunities. Factoring provides a solution to address the challenge of access to financing for African SMEs. Afreximbank will continue to play a leading role in facilitating the growth of factoring in Africa especially in creating awareness and building requisite capacity.”

According to Kanayo Awani, Managing Director, Intra-African Trade Initiative, Afreximbank, “it is generally recognised that Africa presents some of the most exciting global opportunities for economic development and expansion. Factoring is capable of providing support for future success in both funding SMEs and inter-African trade. FCI’s African Chapter is in place to help guide this expansion and develop the necessary skills in market to drive growth at the regional level.”

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

Afrikan Heroes

Tag: African Export-Import Bank

Africa’s Trade Bank Gets Good rating With a “Stable” Outlook

Kelechi Deca

Silver Linen for African Automotive Industry with Afreximbank MoU

Kelechi Deca

Afreximbank to Promote Factoring for SME Financing in East Africa