The African Development Bank (AfDB) will grant a composite facility of $450 million to the African Export-Import Bank (Afreximbank). The facility consists of a three-year $150 million unfunded risk participation agreement and a $300 million loan to boost intra-Africa trade.

The facility will also help support regional integration and contribute to the reduction of the trade finance gap in Africa.

“Given Afreximbank’s commitment to helping African economies diversify their exports, strengthen trade value chains and promote value addition, this facility will contribute to macroeconomic resilience in at least 28 countries. It will provide financing to more than 100 financial institutions and corporate firms and support at least $ 2.8 billion of trade in Africa over a 4-year period,” said Dr George Elombi, the executive vice-president for corporate governance and legal services at Afreximbank.

Afreximbank is the first Pan-African multilateral financial institution which dedicates to financing and to the promotion of intra and extra-Africa trade. Established in October 1993 by the AfDB, the bank has so far approved more than $51 billion of loans to African companies, including $10.3 billion in 2016.

At April 30, 2016, Afreximbank had $9.4 billion worth of assets and was rated Baal by Moody’s and BBB by Fitch.

Fiacre E. Kakpo