The recent news says, African Export-Import Bank (Afreximbank) and the International Islamic Trade Finance Corporation (ITFC) together endorsed a US$250 million facility with an agenda to facilitate funding for the bank to propel an advanced acquisition of Covid-19 vaccines and lead a trade-led economy. The aforesaid agreement took place between Prof. Benedict Oramah, President of Afreximbank, and Eng. Hani Salem Sonbol, CEO ITFC during the authority visit of Prof. Oramah and the Afreximbank representatives to the ITFC Headquarters in Jeddah.
This facility by ITFC will help Afreximbank’s COVID-19 response program geared up for nations in which these organizations operate their activities, securing crucial goods for the improved health of the local populaces, and empowering a swifter return to the economic activity. Plus, the innovative step will also help improve the bank’s capacity to facilitate trade finance instruments while they are of the absolute need for the continent’s export improvement and industrialization.
Additionally, this arrangement also expands Afreximbank’s cooperation with ITFC, the popular trade finance solution provider for OIC participating nations, with both the organizations operating to advance trade cooperation and highlight the advantages of South-South cooperation. The improvement of regional trade cooperation and reincorporation of trade between African and Arab countries strive for vital economic opportunities and stay a strategic agenda of both parties.
The given facility essentially provides Afreximbank’s execution of strategic involvement. It will also improve employment, accelerate economic activity, and expand tax receipts by energizing economic dynamism.
Prof. Benedict Oramah, President of Afreximbank, stated, “The facility signed between Afreximbank and the ITFC will enable us to measure improvements in African trade finance as well as our continent’s reaction to the Covid-19 Pandemic. Africa’s long-term financial development must be outward-looking as much as intra-continental and current agreements highlight a willingness among leaders from both Arab and African trade finance institutions to extend our association.”
Eng. Hani Salem Sonbol, CEO ITFC stated, “This facility will enable both ITFC and Afreximbank to ensure another major step towards our shared mandate to aid the recovery of our member nations, especially in Africa. Delivering vaccines to the regions is an essential requirement to saving African lives and livelihoods, securely restructuring economies, and continuing their economic growth goal.”
It is worth highlighting that the ITFC and Afreximbank association started in 2017 with the approval of the first trade financing agreement with an agenda to provide and fund exports amongst African nations and between Africa and the remaining world. In 2020, ITFC and Afreximbank accelerated the association with another funding facility as part of the Covid-19 response package for the assistance of the Agriculture Sector in Africa. The two organizations are teaming up in various ventures under the Arab Africa Trade Bridges (AATB) Program. Afreximbank will chair the seventh AATB Executive Committee meeting scheduled for fifth December 2021 in Cairo, in preparation for the AATB Ministerial Governing Board that will be held on 6&7 December 2021 under the chairmanship of the Arab Republic of Egypt.
Originally Posted: Ngulminthang
