Pan-African Multilateral Financial Institution | Libya becomes the 53rd member of Afreximbank

Libya has officially joined the agreement to establish the African Export-Import Bank (Afreximbank), becoming the 53rd member nation. With the accession of Libya, almost all African countries are now members of this financial institution dedicated to trade, a path towards strengthening continental cooperation in trade and development.

The membership document, signed by Dr. Khaled Al-Mabrouk Abdullah, opens the way for cooperation between the Libyan government and Afreximbank on key development projects in Libya, with a focus on trade facilitation, infrastructure development and financial support to the North African nation.

Among the projects identified for cooperation are the financing of the development of the Misurata free zone and the construction of a road linking the State of Libya, Chad and the Republic of Niger, which is expected to significantly boost intra-trade. -African. Afreximbank will also provide technical and financial assistance to the Sahelo-Saharan Bank for Investment and Commerce (BSIC) to expand its operations in East Africa, in addition to offering technical training and support to exporters Libyans so that they benefit from the structuring of trade financing and access to African markets.

Afreximbank to support the reconstruction of Libya

Khaled Al-Mabrouk Abdullah, Minister of Finance of the State of Libya, who welcomed this partnership and its importance in supporting reconstruction and economic diversification efforts in his country, declared that the accession of the State of Libya to Afreximbank is an important step in its march towards reconstruction of its economy and the reestablishment of its role as a regional trade hub. “This partnership will not only provide vital financial and technical support to Libya, but will also strengthen the country’s role in intra-African trade,” he explained.

As for Professor Benedict Oramah, President of Afreximbank and the Board of Directors of the Bankil expressed its deep satisfaction with the decision of the Libyan State to join the Bank, highlighting the mutual benefits that both parties will derive from the agreement: “we are delighted to warmly welcome the State of Libya within the entire African family of Afreximbank.” He added: “By joining the Bank, Libyan public and private sector entities will have access to our wide range of financed and unfunded products and services, particularly those aimed at deepening trade and investment relations between Libya and Africa, to invest in trade-friendly infrastructure and to transform the structure of the Libyan economy. »

As a reminder, Libya's GDP stood at US$50.49 billion in 2023, making it the 12th largest economy in Africa, an opportunity that could be taken advantage of considering that less 10% of its trade is with other African countries. The signing of the agreement to establish Afreximbank represents a unique opportunity for Libya to increase its trade with other African countries.

Afreximbank

The African Export-Import Bank (Afreximbank) is a pan-African multilateral financial institution dedicated to financing and promoting intra- and extra-African trade. For 30 years, Afreximbank has deployed innovative structures to provide financing solutions that facilitate the transformation of African trade structure and accelerate industrialization and intra-regional trade, thereby supporting economic expansion in Africa. A strong supporter of the African Continental Free Trade Area Agreement (AfCFTA), Afreximbank launched the Pan-African Payment and Settlement System (PAPSS) which was adopted by the African Union (AU) as the platform for payment and settlement to support the implementation of the AfCFTA. In collaboration with the AfCFTA Secretariat and the AU, the Bank established a US$10 billion Adjustment Fund to help countries participate effectively in the AfCFTA. As of the end of December 2023, the Bank's total assets and collateral stood at approximately US$37.3 billion and its shareholders' funds stood at US$6.1 billion. Afreximbank is rated A by GCR International Scale, Baa1 by Moody's, A- by Japan Credit Rating Agency (JCR) and BBB by Fitch. Over the years, Afreximbank has grown into a group consisting of the Bank, its impact financing subsidiary called the African Export Development Fund (FEDA), and its insurance management subsidiary, AfrexInsure, (the three entities form “ the Group”). The Bank is headquartered in Cairo, Egypt.

Par The editorial staffEditorial Committee – Casablanca