eBusiness Weekly
Business Writer
The African Export-Import Bank (Afreximbank) launched its Fund for Export Development in Africa (FEDA) office in Kigali, Rwanda.
FEDA aims to address Africa’s US$110 billion financing gap for internal trade, developing valuable exports, and industrial supply chains. Rwanda was the first of fifteen African nations to approve FEDA’s establishment.
FEDA offers long-term financing for businesses of all sizes, from small startups to large corporations, across various sectors.
The Rwandan Prime Minister and Afreximbank President both spoke at the opening ceremony, highlighting the initiative’s potential to transform African economies and boost intra-regional trade.
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.
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.” — Moneyweb
