The African Export – Import Bank (Afreximbank) (www.Afreximbank.com) has officially unveiled its Fund for Export Development in Africa (FEDA) office in Kigali, Rwanda. FEDA was established to tackle Africa’s US$110 billion financing gap for intra-African trade, value-added export development, and industrialisation value chains, with Rwanda being the first among fifteen African nations to ratify its establishment agreement.
The event was graced by the Right Honourable Dr. Edouard Ngirente, the Prime Minister of the Republic of Rwanda who was accompanied by the President and Chairman of the Board of Directors of Afreximbank, Prof. Benedict Oramah, Executive Vice Presidents of Afreximbank, members of the Board of Directors of FEDA and Marlene Ngoyi, Chief Executive Officer of FEDA.
Speaking at the inauguration, the Prime Minister said: “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 which lays great emphasis on the transformation of African economies and acceleration of economic growth on the continent.”
He noted that despite Africa’s significant resource endowments and contiguous markets, the continent had the lowest level of intra-regional trade in the world, adding that the continent’s share of value created remained the lowest across many products and commodities due to sub-optimal value addition.
On his part, President of Afreximbank, Prof. Benedict Oramah noted: “FEDA adds to the pool of institutions helping Africa to create its own capital base for development. With a focus on providing long-term, patient capital targeting all segments, from SMEs to corporates, and cutting across dynamic sectors of value-addition, services, and technology, FEDA is poised to drive Africa’s development under a new vision of de-commoditised, growth-oriented pathways underpinned by a dynamic private sector.”
Prof. Oramah explained: “The strategic importance of FEDA is becoming apparent just four years after it began operations. Funds Under Management under different strategies amount to about US$800 million and FEDA is using some of these funds to create and mobilise additional funds. FEDA is also a co-promoter of a US$500 million Africa Credit Opportunity Fund (ACOF) and is currently creating a US$100 million Venture Capital Fund to focus on start-ups and SMEs with seed funding from Afreximbank.”
The inauguration, which took place at the Radisson Blu Hotel and Kigali Convention Centre, was witnessed by over 150 guests drawn from the Rwandan government, the business and diplomatic community, in Rwanda and representatives of the African Union and other regional economic and political bodies among others.
FEDA became the Fund Manager of the US$1 billion AfCFTA Adjustment Fund in 2023.
Distributed by APO Group on behalf of Afreximbank.
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About FEDA:
The Fund for Export Development in Africa (“FEDA”) is the impact investment subsidiary of Afreximbank set up to provide equity, quasi-equity, and debt capital to finance the multi-billion-dollar funding gap (particularly in equity) needed to transform the Trade sector in Africa. FEDA pursues a multi-sector investment strategy along the intra-African trade, value-added export development, and manufacturing value chain which includes financial services, technology, consumer and retail goods, manufacturing, transport&logistics, agribusiness, as well as ancillary trade enabling infrastructure such as industrial parks. www.FEDAGroup.org
About Afreximbank:
African Export-Import Bank (Afreximbank) is a Pan-African multilateral financial institution mandated to finance, facilitate and promote intra and extra-African trade. For over 30 years, the Bank has been deploying innovative instruments to deliver financing solutions that support the transformation of the structure of Africa’s trade, accelerating industrialization and intra-regional trade, thereby boosting economic expansion in Africa. A stalwart supporter of the AfCFTA, Afreximbank has in partnership with the African Union Commission and AFCFTA Secretariat launched a Pan-African Payment and Settlement System (PAPSS) that was adopted by the African Union (AU) as the payment and settlement platform to underpin the implementation of the Free Trade Agreement. The AFCFTA Secretariat and the Bank have created a USD 10 billion Adjustment Fund to support countries to effectively participate in the AfCFTA. At the end of September 2023, Afreximbank’s total assets and guarantees stood at USD 31.5 billion, and its shareholder funds amounted to USD 5.85 billion. The Bank disbursed more than USD 100 billion between 2016 and 2023 through various interventions for the advancement of the continent. Afreximbank has investment grade ratings assigned by GCR (international scale) (A), Moody’s (Baa1), Japan Credit Rating Agency (JCR) (A-) and Fitch (BBB). Afreximbank has evolved into a group entity comprising the Bank, its impact fund subsidiary called the Fund for Export Development Africa (FEDA), and its insurance management subsidiary, AfrexInsure, (together, “the Group”).For more information, visit: www.Afreximbank.com