Afreximbank plans $ 6.5 billion capital increase

The African Import-Export Bank (Afreximbank) will launch a general capital increase operation (GCI) of $ 6.5 billion to finance some of its strategic activities. The capitalization operation was approved by African Union finance ministers, the AU Executive Council and the 34th Ordinary Session of the Assembly of AU Heads of State.

The Cairo-based institution (Egypt) plans to support the purchase of vaccines against Covid-19 for the continent, support post-pandemic recovery efforts for the economies of African countries, and stimulate the implementation of the African Continental Free Trade Agreement (AfCFTA), among others.

According to a bank statement from October 28, 2021, African member states are expected to contribute up to $ 1.5 billion in paid-up capital ($ 3.9 billion in enforceable capital) as part of their total contribution. The bank’s other shareholders will be able to contribute up to $ 1.1 billion to enable them to participate in proportion to their stake in Afreximbank.

“The general capital increase will allow Afreximbank to significantly increase its efforts to promote intra-African trade, boost export development and accelerate the continent’s recovery from the economic hardships caused by covid-19. This is a historic moment for the bank, and a great opportunity to deepen its ability to generate transformative growth across the continent, ”said Prof. Benedict Oramah, President of Afreximbank.

The pan-African institution also announced its intention to double its annual lending capacity and the size of its balance sheet over the next five years, thereby helping to reduce the annual trade finance gap existing in Africa.

At the end of 2020, Afreximbank’s total assets and guarantees stood at US $ 21.5 billion, and its shareholders’ funds amounted to US $ 3.4 billion. The institution disbursed more than $ 42 billion between 2016 and 2020.

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