After Rwanda in November 2020 and Mauritania in January 2021, Guinea becomes the third African nation to sign the agreement establishing the Fund for the Development of Exports in Africa (FEDA), a subsidiary entity of the African Bank of ‘Import-Export (Afreximbank). The establishment agreement was signed on March 31 by the Minister of Foreign Affairs, Ibrahima Khalil Kaba, on behalf of the Republic of Guinea.
In a statement issued on Monday (May 17th), Afreximbank said that in order to finalize the process of legally establishing FEDA, two member states must sign and ratify the agreement. The signing of the agreement by Guinea, she emphasizes, is a very important step as it accelerates the completion of legal creation procedures.
“Afreximbank greatly welcomes the signing of the Agreement establishing the FEDA by the Republic of Guinea, thus marking a new important step in the process of setting up FEDA. This provides the momentum to support the establishment of FEDA as a new multilateral development platform on the continent, “commented Prof. Benedict Oramah, President of Afreximbank and Chairman of the Board of FEDA.
As a reminder, FEDA was set up by Afreximbank to facilitate foreign direct investment flows in the trade and export sectors in Africa. The institution also wants to close the equity financing gap of 110 billion US dollars per year in the areas of intra-African trade and export development. FEDA therefore aims to provide equity financing to companies operating in key industries and sectors in order to significantly optimize the achievement of Afreximbank’s development priorities. It displays strategic objectives in terms of the development of intra-African trade and the development of industrialization and exports.