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April 14, 2024
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Afreximbank subsidiary inaugurates Kigali office to address Africa’s $110bn equity financing shortfall

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By Okeoghene Akubuike

The African Export–Import Bank (Afreximbank) has unveiled its Fund for Export Development in Africa (FEDA) office in Kigali, Rwanda.

This is contained in a statement issued by Vincent Musumba, Manager, Communications and Events, Afreximbank in Abuja on Wednesday.

The statement said FEDA was established to tackle Africa’s 110 billion dollar financing gap for intra-African trade, value-added export development, and industrialisation value chains.

It said Rwanda was the first among 115 African nations to ratify its establishment agreement.

The statement said the event was graced by Dr Edouard Ngirente, Prime Minister, Republic of Rwanda who was accompanied by the President and Chairman of the Board of Directors of Afreximbank, Prof. Benedict Oramah.

It said others in attendance were the Executive Vice-Presidents of Afreximbank, members of the Board of Directors of FEDA and Marlene Ngoyi, Chief Executive Officer of FEDA.

The statement said Ngirente was quoted as saying at the event that :”The establishment of FEDA in Rwanda reflects our commitment to not only fostering economic development within our borders but also to playing a pivotal role in the economic transformation of our continent.

“This initiative is a step closer to the realisation of the goals outlined in the Agenda 2063 of the African Union.

“The agenda lays great emphasis on the transformation of African economies and acceleration of economic growth on the continent.”

The Prime Minister noted that despite Africa’s significant resource endowments and contiguous markets, the continent had the lowest level of intra-regional trade in the world.

He said that the continent’s share of value created remained the lowest across many products and commodities due to sub-optimal value addition.

Oramah was quoted as saying, “FEDA adds to the pool of institutions helping Africa to create its own capital base for development.

” FEDA is poised to drive Africa’s development under a new vision of de-commoditised, growth-oriented pathways underpinned by a dynamic private sector.

“This will be done with a focus on providing long-term, patient capital, targeting all segments, from Small and Medium Enterprises(SMEs) to corporates, and cutting across dynamic sectors of value-addition, services, and technology. ”

He said the strategic importance of FEDA was becoming apparent just four years after it began operations.

“Funds Under Management under different strategies amount to about 800 million dollars and FEDA is using some of these funds to create and mobilise additional funds.”

According to Oramah, FEDA is also a co-promoter of a 500 million-dollar Africa Credit Opportunity Fund (ACOF).

“FEDA is also currently creating a 100 million dollar Venture Capital Fund to focus on start-ups and SMEs with seed funding from Afreximbank.”

The statement said FEDA became the Fund Manager of the one billion dollars African Continental Free Trade Area(AfCFTA) Adjustment Fund in 2023(NAN)(www.nannews.ng)

 

Edited by Vivian Ihechu

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