(Ecofin Agency) - Afreximbank announced the launch of its fully-owned Mauritius-based $100 million Fund for Export Development in Africa (FEDA). It is aimed at supporting African SMEs to make them well-functioning for export.

It will offer seed funding to eligible companies to help them attract more funds and investors. The funds’ managing director Philip Kamau, thinks that this is the beginning of a solution to the deficit of SMEs financing which is presented as the main barrier to trade with African countries.

This year, $10 million is to be invested in the continent. The targeted sectors are agribusiness, the manufacturing industry, retailing, financial services, technology, tourism, transport and logistics. In the long term, the FEDA expects to attract $450 million of foreign direct investments.

Chamberline Moko