Afreximbank Commences Development of Morocco-Africa Trade and Investment Promotion Program.

0

African Export-Import Bank (Afreximbank) has entered into a memorandum of understanding (MoU) with the Government of Morocco, represented by the Ministry of Economy and Finance, to develop a $ 1 billion Morocco-Africa Trade and Investment Promotion Program.

According to the terms of the MoU, the program will aim to facilitate and guide future cooperation in areas of common interest between Afreximbank, the Ministry of Economy and Finance of Morocco, other government departments, and Moroccan economic operators.

Areas of collaboration under the program will include financing and promoting intra- and extra-African trade through the implementation of credit, risk-bearing, and trade information and advisory services. It will also include support for engagements, missions, exchange of information, and capacity building.

Nadia Fettah, the Minister of Economy and Finance of Morocco discussed the move at the MoU signing ceremony: “This agreement marks an important step towards consolidating the relationship between the Kingdom of Morocco and Afreximbank.

“It also affirms the continued commitment of the government to increasing trade promotion and cooperation and the development of Africa.”

In addition, under project finance, the MoU facilitates access to information on the potential pipeline of investment projects in Morocco, or from Moroccan entities to African countries, which would be suitable for financing from Afreximbank.

Afreximbank will cooperate with the Ministry and relevant Moroccan entities and economic operators to develop and deploy appropriate project structuring and financing solutions.

Benedict Oramah, president and chairman of the board of AfreximBank, also discussed the partnership at the ceremony. He explained: “This MOU sets the stage for deepening the collaboration and relationship between Afreximbank and the Kingdom of Morocco.

“Our mandate to transform trade and support economies in Africa is firm and today’s agreement is another crucial step in achieving this objective.”

Afreximbank will support Morocco’s economic operators across three years as part of the program. This will be implemented using loans and guarantee facilities, as well as investment banking and advisory services.

The program is based on Morocco’s firm engagement – playing a key role in promoting intra-African cooperation. It is also based on the efforts of the Ministry of Economy and Finance to establish mutually beneficial partnerships with African/regional financial institutions to promote financial and economic cooperation between Moroccan economic operators and their African counterparts.

African Export-Import Bank (Afreximbank) is a Pan-African multilateral financial institution mandated to finance and promote intra- and extra-African trade. For 30 years, the Bank has been deploying innovative structures 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 African Continental Free Trade Agreement (AfCFTA), Afreximbank has 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 AfCFTA. Working with the AfCFTA Secretariat and the AU, the Bank is setting up a US$10 billion Adjustment Fund to support countries to effectively participate in the AfCFTA. At the end of 2022, Afreximbank’s total assets and guarantees stood at over US$31 billion, and its shareholder funds amounted to US$5.2 billion. The Bank disbursed more than US$86 billion between 2016 and 2022. 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”).

 

Choose your Reaction!
Leave a Comment