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Tag: AFREXIMBANK

  • Afreximbank okays $1b for African trade

    African Export-Import Bank (Afreximbank), has instituted a $1billion Agreement for the African Continental Free Trade Area (AfCFTA) Adjustment Facility to enable countries adjust in an orderly manner to sudden tariff revenue losses as a result of the implementation of the AfCFTA.

    Afreximbank President, Prof. Benedict Oramah, who addressed the 12th Extraordinary Summit of African Union (AU) Heads of State, announced a series of initiatives to support the implementation of AfCFTA, yesterday in Niamey, Niger.

    “This facility will help countries to accelerate the ratification of the AfCFTA,” he said, telling the heads of state that, by starting the operational phase of the AfCFTA, “you have started a movement.”“You must not look back. This movement is now unstoppable.”

    He added that, as part of its support for the implementation of the AfCFTA, the Bank had provided support to aid the work being done by the African Regional Standards Organisation and the AU in implementing the agreement. Oramah also said the Summit of the launch the Pan-African Payment and Settlement System (PAPSS), the first continent-wide payment digital system focused on facilitating payments for goods and services in intra-African trade in African currencies.

    Read also: Afreximbank mulls African payment, settlement platform

    “Today we will launch the Africa-wide digital payment infrastructure – the Pan-African Payment and Settlement System (PAPSS) – that we developed in collaboration with the African Union,” he said. “It is a platform that will domesticate, intra-regional payments, save the continent more than $5 billion in payment transaction costs per annum, formalise a significant proportion of the estimated $50 billion of informal intra-African trade, and above all, contribute in boosting intra-African trade.”

    “Making cross-border payments easier, cheaper and safer is an obvious critical step in creating an Africa we want,” he concluded.

  • Afreximbank mulls African payment, settlement platform

    The African Export-Import Bank (Afreximbank) said it will launch its new Pan-African Payment and Settlement (PAPS) platform to ease transaction on the continent.

    Its President, Prof Benedict Oramah, explained that PAPS, which will be available on mobile devices, will facilitate the clearing and settlement of intra-African trade transactions in African currencies and significantly reduce the dependence on U.S. dollars and other hard currencies in the settlement of regional trade.

    According to him, the bank has partnered the West African Monetary Institute (Wami) to launch a pilot in six West African countries by the end of the year. The West African Monetary Zone is the continent’s only economic community that does not already have a settlement platform – hence Afreximbank’s decision to pilot the new solution in the region.

    Previously referred to as the Intra-Africa Trade Platform, it is one of a number of new initiatives that the bank is currently implementing as part of its strategy to facilitate greater volumes of intra-African trade as well as formalise the continent’s informal trade, which is estimated by the bank to be close to $40billion.

    “Africa’s challenge when it comes to payments and settlements”, Oramah explained, “comes down to the fact that it has multiple local currencies, meaning that cross-border payments typically involve a third currency, such as the US dollar or Euro. This leads to a high cost of intra-African payments, which can take weeks to process.

    “Governments want to build their reserves so they tend to prefer exports to markets that issue hard currency. For this reason, a significant amount of cross-border trade occurs informally. The issue is compounded by the fact that most traders currently do not have a system that enables them to settle in a secure way,” Oramah said.

    He explained that with the new platform “a buyer in country A buying from a seller in country B can pay in his or her own currency for the goods, while the seller will receive his or her own currency. At the end of the day, the only countries that will have to pay dollars will be those in deficit”.

    Although Oramah agreed that it may not be possible to completely eliminate hard currencies in trade settlements, he believes that through the platform, it will be significantly reduced.

  • Afreximbank plans $40b trade deals

    The second Intra-African Trade Fair (IATF2020) scheduled to take place in Kigali from September 1 to 7, 2020 will target the execution of Intra-African trade deals worth more than $40 billion, Prof. Benedict Oramah, President of the African Export-Import Bank (Afreximbank), has announced.

    Oramah was speaking in Kigali at the signing of the hosting agreement for IATF2020 by the Government of Rwanda, Afreximbank and the African Union.

    Soraya Hakuziyaremye, Minister of Trade and Industry of Rwanda, signed for the Government while Oramah signed for Afreximbank and Albert Muchanga, Commissioner for Trade and Industry of the African Union, signed for the organisation during the ceremony held at the Transform Africa Summit taking place in Kigali

    Oramah said that for IATF2020, which is being organized by Afreximbank in collaboration with the African Union and hosted by Rwanda, the partners had set themselves the ambitious target of attracting more than 1,000 exhibitors and hosting over 10,000 buyers and conference participants from over 50 countries.

    According to him, the trade fair will build on the tremendous progress made in the first Intra-African Trade Fair held in Cairo in 2018 to achieve more far-reaching results in terms of impact in promoting Intra-African trade.

    ProOramah who noted that “52 countries have signed the AfCFTA and 22 have ratified it, paving the way for the agreement to enter into force”, said that IAATF2020 would include an IATF Trade and Investment Forum which will look at the practical challenges affecting AfCFTA implementation and provide solutions on how to address them and exploit the benefits offered by the Agreement.

    Afreximbank will showcase some practical solutions, including the Pan-African Payments and Settlement System, which will be launched at the AU Extra-Ordinary Summit of Heads of State and Government in Niamey in July 2019, he said.

    That system will facilitate trade settlement in local currencies, providing a vital boost to intra-regional trade.

    Also speaking, Amb. Muchanga said that the partners in the IATF had succeeded in creating a brand and that the trade fair was a platform for sharing trade information. It brought together buyers and sellers and created access to financing for businesses.

    Amb. Muchanga announced that the African Union was establishing an African Trade Observatory, which will gather trade-related information from African countries and be a resource for anybody who wanted to trade with the continent as a source of general trade statistics.

    Ms. Hakuziyaremye expressed Rwanda’s appreciation at being selected to host IATF2020 and said that the country was committed to building on the success of IATF2018 to ensure a successful event in 2020.

    She urged all African countries to work together for the success of the AfCFTA.

    IATF2018 attracted more than 1,000 exhibitors from 45 countries and across 20 sectors, generating in excess of $32 billion in deals, some of which Afreximbank has already financed. IATF2020 will provide a platform for businesses to share trade, investment and market information and for buyers and sellers, investors and countries to conclude business deals

  • ‘Afreximbank’ll create digital ecosystem for finance flows’

    The African Export-Import Bank (Afreximbank) is working, with the support of African Union (AU), to create a digital ecosystem that will eliminate the major bottlenecks to trade finance flows within Africa, its President, Prof. Benedict Oramah, said Washington D.C.

    Delivering an address on 11 April at the Initiative for Global Development (IGD) Frontier 100 Forum organised by the IGD on the sidelines of the World Bank/IMF Spring Meetings, Prof. Oramah said one of the major constraints to intra-African trade was lack of information to support intra-regional trade and investments. That was why many African countries were importing products from outside the continent while neighboring countries were exporting the same products at a much lower cost.

     

     

  • Afreximbank grows net profit by 25% to $275.9m

    African Export-Import Bank (Afreximbank) grew its net profit by 25 per cent to $275.9 million in 2018 as the bank showed steady growths in key performance indicators.

    The audited report and accounts for the year ended December 31, 2018 showed that Afreximbank’s net profit rose from $220.5 million in 2017 to $275.9 million in 2018.

    The results showed that the bank’s total assets grew by 13 per cent from $11.91 billion 2017 to $13.42 billion in 2018, due mainly to growth in net loans and advances, which went up 30.3 per cent.

    President, African Export-Import Bank (Afreximbank), Prof. Benedict Oramah said that the performance in 2018 was a reflection of the strength of Afreximbank’s underlying business and restated commitment to driving its strategic objectives, to strong orderly growth in assets and earnings.

    He noted that Afreximbank, which implements its programmes and facilities through five-year strategic plans, began implementing its fifth strategic plan, dubbed “Impact 2021, Africa Transformed”, in 2018.

    The five-year strategy is anchored on four pillars including improving intra- Africa trade; facilitating industrialisation and export development; strengthening trade finance leadership; and improving financial soundness and performance.

     

     

  • Afreximbank grows net profit by 25% to $275.9m

    African Export-Import Bank (Afreximbank) grew its net profit by 25 per cent to $275.9 million in 2018 as the bank showed steady growths in key performance indicators.

    The audited report and accounts for the year ended December 31, 2018 showed that Afreximbank’s net profit rose from $220.5 million in 2017 to $275.9 million in 2018.

    The results showed that the bank’s total assets grew by 13 per cent from $11.91 billion 2017 to $13.42 billion in 2018, due mainly to growth in net loans and advances, which went up 30.3 per cent.

    Read also: Afreximbank president urges Fed Govt to sign AfCFTA

    President, African Export-Import Bank (Afreximbank), Prof. Benedict Oramah said that the performance in 2018 was a reflection of the strength of Afreximbank’s underlying business and restated commitment to driving its strategic objectives, to strong orderly growth in assets and earnings.

    He noted that Afreximbank, which implements its programmes and facilities through five-year strategic plans, began implementing its fifth strategic plan, dubbed “Impact 2021, Africa Transformed”, in 2018.

    The five-year strategy is anchored on four pillars including improving intra- Africa trade; facilitating industrialisation and export development; strengthening trade finance leadership; and improving financial soundness and performance.

  • Afreximbank president urges Fed Govt to sign AfCFTA

    President of African Export-Import Bank (Afreximbank), Prof. Benedict Oramah, has urged the Federal Government to sign the African Continental Free Trade Agreement (AfCFTA).

    He gave the advice while speaking in Lagos last Tuesday as guest lecturer at the 2019 edition of the annual Bullion Lecture organised by the Centre for Financial Journalism (CFJ Nigeria).

    Professor Oramah, who spoke on the topic: Leveraging the African Continental Free Trade Agreement to Boost Nigeria’s Economic Development, urged the Federal government to take urgent steps to endorse AfCAFTA in order to key into what he called a window of opportunity for the country to maximise its economic potential.

    He expressed concern over the inability of the  government to endorse the agreement, which was produced from the decisions and milestones articulated at the Abuja Treaty of  1991 aimed at defining clear plans for Africa’s economic integration.

    According to him, the AfCFTA was signed in Kigali, Rwanda on March 21, 2018 by 44 of 55 African countries while Nigeria which hosted the forum that gave birth to the initiative was yet to decide on what to do with it.

    Oramah said it was worrying to well-meaning Nigerians and other countries of Africa that a treaty, which Nigeria gave birth to had to be delivered in Rwanda  while smaller countries that looked up to  her had  endorsed the agreement and went forward to ratify it.

    “The AfCFTA, which was signed in Kigali, Rwanda on March 21, 2018, was in line with the Abuja Treaty expectations. So … the child that was conceived in Nigeria was born in Rwanda. And with the emergence of that child, Africa sees a renewed hope, a reinvigoration to chart a new course,” Oramah told the audience in Lagos.

    Tracing the historical and economic imperatives that necessitated the birth of the AfCFTA, the Afreximbank boss noted that Africa benefited a little from  many years it was ruled by colonial powers whose main focus was to draw the raw materials it needed for its home industries while it dumped its own manufactured goods in return.

    He said the AfCFTA was meant to change the narrative as a continent that was called the “Basket Case”, is now on the path to becoming the “Bread Basket” of the world.

    Read also: ‘AfCFTA’ll worsen Nigeria’s woes’

    Enumerating the benefits of the AfCFTA to Africa and to Nigeria in particular, Prof. Oramah said the treaty would create the environment for the continent to chart a new development path and eliminate the causes of weakness while upholding the areas of strength among the 55 countries of the continent.

    He also said the initiative would create the required economic integration that would promote sub-regional and continental supply chains such as the automotive industry, as “the AfCFTA offers opportunity for African countries to begin to create and nurture infant industries”.

    Oramah added that : “The AfCFTA creates opportunities for African economies, including Nigeria, to take over from China as the World’s manufacturing hub. China exports $45 billion of light manufacturers into Africa. Nigeria and other African countries can expect to fill that void if they take advantage of the tariff and non-tariff reductions in the AfCFTA.”

  • Afreximbank invests $1b in Nigeria’s EPZ

    Pan African multilateral financial institution,  African Export–Import Bank (Afreximbank) said it investing  $ 1 billion in Nigeria exports Processing Zones (EPZs).

    Delivering the 2019 bullion lecture titled:  Leveraging The Africa Continental Free Trade Agreement To Boost Nigeria’s Economic Agreement To  Boost Nigeria’s Economic Development, its President, Prof. Benedict Oramah said the bank, heaquartered in Cairo, Egypt, is investing in Nigeria Special Economic Zone Company (NSEZCO) which  owns various EPZs across  the country.

    Speaking at the forum organised by the Centre for Financial Journalism in Lagos, he said the planned projects are located in Lagos and  Aba.

    Oramah said African Continental Free Trade Agreement  (AfCFTA) will  drive Africa and Nigeria’s development, adding that the country stood a great chance  of enlarging  foreign direct investment (FDI) inflows AfCFTA

    As the largest economy and the most populous in Africa, he said the agreement presents an attractive domestic market base for foreign investors interested in manufacturing for exports to the rest of Africa.

    He said today, FDI inflows into Nigeria stood at about $3billion, adding that  90 per cent of this goes to the oil sector. This can change positively with the AfCFTA, he said.

    According to him,  the bank  signed a framework agreement with NEXIM and Nigerian Export Promotion Council (NEPC) to create the Nigeria-Africa Trade and Investment Promotion Programme (NATIPP) to support Nigeria’s trade with other African economies

    He said Afreximbank will disburse $25 billion on a revolving basis in support of Intra -African Trade between 2017–2021, adding that over $14 billion have so far been disbursed.

    Read also: Eswatini joins Afreximbank

    He said the bank launched the Fund for Export Development in Africa (FEDA) designed to provide equity and quasi-capital in support of entities involved in intra Africa trade.

    ance Centers (Testing, Inspection and Certification developing Quality Assurance Centers across Africa to support non across Africa to support non -traditional exports. One such project is traditional exports

     

    . He said one such project is underway in Ogun State. The project is estimated to cost $25 million.

  • Eswatini joins Afreximbank

    THE Kingdom of Eswatini in Cairo has deposited the instrument of its accession to the 1993 Agreement for the Establishment of the African Export-Import Bank (Afreximbank), making it the 51st African country to become a participating or shareholder state of the continental trade finance institution.

    The instrument, signed on February 25 by Prime Minister Ambrose Mandvulo Dlamini of Eswatini, was handed over to Prof. Benedict Oramah, President of Afreximbank, by Promise Msibi, Permanent Representative of Eswatini to the African Union and the country’s Ambassador to Ethiopia, during a ceremony at the bank’s headquarters building.

    Speaking during the ceremony, Prof. Oramah, expressed the bank’s appreciation for the “milestone occasion”, which he described as the result of years of ongoing and persistent engagement between the bank and Eswatini.

    In anticipation of the accession of the Kingdom of Eswatini, the bank was already working with the Ministry of Finance and Ministry of Industry, Commerce and Trade of Eswatini to identify priority sectors and transactions which it could support, said President Oramah.

    They included support for acquisition of wagons for Eswatini Railway, equipment import facility for Swazi Mobile and support for the planned export processing zone.

     

  • Afreximbank gets audit director

    The African Export-Import Bank (Afreximbank) has announced the appointment of Abel Osuji as Director of Internal Audit.

    Until the appointment, Osuji was Senior Manager Internal Audit.

    Osuji joined Afreximbank from Masters Energy Limited, where he was Assistant General Manager, Internal Audit.

    Earlier, he was Head, Investigation and Business Risk Monitoring Unit, Intercontinental Bank (now Access Bank) between 2000 and 2010 and Trainee (staff accountant), Senior Accountant to Audit Supervisor, at EY (formerly Ernst & Young) Nigeria, from 1994 to 2000.

    The new director received a Master of Science (MSc) in Economics from the Enugu State University of Technology in 2005, and an MBA from University of Lagos in 2000. He holds a Bachelor of Science in Accounting from the University of Port Harcourt, received in 1992.

    Read also: Afreximbank names Mba Director for Compliance

    Osuji was elected Fellow of the Institute of Chartered Accountants of Nigeria (ICAN) in 2013 and holds a Certified Risk Analyst certification, which he received from the International Academy of Business and Financial Management in 2013.

    Last year, he attended the Advanced High-Performance Leadership programme at IMD in Switzerland.