Cairo, 17 May 2021: – The Republic of Guinea has signed the Agreement for the Establishment of the Fund for Export-Development in Africa (FEDA), a development impact-oriented subsidiary of the African Export-Import Bank (Afreximbank).
The Establishment Agreement was signed on 31 March 2021 by the Minister for Foreign Affairs, Mr. Ibrahima Khalil Kaba, on behalf of the Republic of Guinea.
Guinea becomes the third signatory of the Establishment Agreement after Rwanda in November 2020 and Mauritania in January 2021. To complete the FEDA Legal Establishment process, two Afreximbank member states are required to sign and ratify the Establishment Agreement. The signing of the Agreement by Guinea is a highly significant step as it enables FEDA’s Legal Establishment procedures to progress towards completion.
The Establishment Agreement grants FEDA legal capacity to conduct business in its own name as an international organisation with privileges and immunities accorded to other Multilateral Financial Institutions on the continent.
Professor Benedict Oramah, President of Afreximbank, and Board Chairman of FEDA said: “We at Afreximbank greatly appreciate the signature of the FEDA Establishment Agreement by the Republic of Guinea, marking another major milestone in the FEDA Establishment process. This notable action has added the required momentum in support of the establishment of FEDA as a new multilateral development platform on the continent.”
FEDA was established by Afreximbank to catalyse Foreign Direct Investment (FDI) flows into Africa’s trade and export sectors and to fill the equity funding gap that amounts to US$110 billion per annum in the areas of Intra-African trade and Export Development.
FEDA aims to provide equity financing to companies operating in key industries and sectors to significantly increase the likelihood of success in delivering on Afreximbank’s development priorities and meeting the Bank’s strategic goals under the main pillars of the intra-African Trade Strategy and the Industrialisation and Export Development Strategy.
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About Afreximbank: African Export-Import Bank (Afreximbank) is a Pan-African multilateral financial institution mandated to finance and promote intra-and extra-African trade. Afreximbank deploys 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. The Bank has a rich history of intervening in support of African countries in times of crisis. Through the Pandemic Trade Impact Mitigation Facility (PATIMFA) launched in April 2020, Afreximbank has disbursed more than US$6.5 billion in 2020 to help member countries manage the adverse impact of financial, economic, and health shocks caused by the COVID-19 pandemic. A stalwart supporter of the African Continental Free Trade Agreement (AfCFTA), Afreximbank has completed the development of 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. Afreximbank is working with the AU and the AfCFTA Secretariat to develop an Adjustment Facility to support countries in effectively participating in the AfCFTA. At the end of 2020, the Bank’s total assets and guarantees stood at US$21.5 billion, and its shareholder funds amounted to US$3.4 billion. Afreximbank disbursed more than US$42 billion between 2016 and 2020. The Bank has ratings assigned by GCR (international scale) (A-), Moody’s (Baa1) and Fitch (BBB-). The Bank is headquartered in Cairo, Egypt.
For more information, visit: www.afreximbank.com.
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Amadou Labba Sall, asall@afreximbank.com