The African Export – Import Bank (Afreximbank) has officially opened its Fund for Export Development in Africa (FEDA) office in Kigali, Rwanda. FEDA aims to address Africa’s US$110 billion financing gap for intra-African trade, value-added export development, and industrialization value chains, with Rwanda being the first of fifteen African nations to ratify its establishment agreement.
The ceremony was attended by the Right Honourable Dr. Edouard Ngirente, Prime Minister of the Republic of Rwanda, along with Prof. Benedict Oramah, President and Chairman of the Board of Directors of Afreximbank, Executive Vice Presidents of Afreximbank, members of the Board of Directors of FEDA, and Marlene Ngoyi, CEO of FEDA.
In his speech at the inauguration, the Prime Minister stated, “The presence of FEDA in Rwanda demonstrates our commitment to not only promoting economic development within our borders but also to actively participating in the economic transformation of our continent. This initiative aligns with the goals outlined in the African Union’s Agenda 2063, emphasizing the need for economic growth and transformation across Africa.”
He highlighted the low level of intra-regional trade in Africa despite its abundant resources and proximity of markets, emphasizing the need for increased value addition to boost the continent’s share of value creation.
Prof. Oramah of Afreximbank remarked, “FEDA contributes to Africa’s effort in establishing its own capital base for development. With a focus on providing patient capital for SMEs, corporates, and various sectors, FEDA is poised to drive Africa’s development through value-addition, services, and technology sectors, supported by a thriving private sector.”
He further explained that FEDA has managed funds totaling approximately US$800 million under various strategies and is working on mobilizing additional funds. FEDA is also involved in the Africa Credit Opportunity Fund (ACOF) and is creating a Venture Capital Fund for start-ups and SMEs with funding from Afreximbank.
The inauguration event, held at the Radisson Blu Hotel and Kigali Convention Centre, was attended by over 150 guests from the Rwandan government, business and diplomatic community, African Union representatives, and other regional bodies.
In 2023, FEDA took on the role of Fund Manager for the US$1 billion AfCFTA Adjustment Fund.
Distributed by APO Group on behalf of Afreximbank.
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About FEDA:
The Fund for Export Development in Africa (“FEDA”) is the impact investment subsidiary of Afreximbank set up to provide equity, quasi-equity, and debt capital to finance the multi-billion-dollar funding gap (particularly in equity) needed to transform the Trade sector in Africa. FEDA pursues a multi-sector investment strategy along the intra-African trade, value-added export development, and manufacturing value chain which includes financial services, technology, consumer and retail goods, manufacturing, transport&logistics, agribusiness, as well as ancillary trade enabling infrastructure such as industrial parks. www.FEDAGroup.org
About Afreximbank:
African Export-Import Bank (Afreximbank) is a Pan-African multilateral financial institution mandated to finance, facilitate and promote intra and extra-African trade. For over 30 years, the Bank has been deploying innovative instruments 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 AfCFTA, Afreximbank has in partnership with the African Union Commission and AFCFTA Secretariat 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 Free Trade Agreement. The AFCFTA Secretariat and the Bank have created a USD 10 billion Adjustment Fund to support countries to effectively participate in the AfCFTA. At the end of September 2023, Afreximbank’s total assets and guarantees stood at USD 31.5 billion, and its shareholder funds amounted to USD 5.85 billion. The Bank disbursed more than USD 100 billion between 2016 and 2023 through various interventions for the advancement of the continent. 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”).For more information, visit: www.Afreximbank.com