Afreximbank launches equity investment fund for export development

  • Written by  Sanne Wass

The African Export-Import Bank (Afreximbank) has set up a new fund that will provide seed capital to exporters in Africa.

The Fund for Export Development in Africa (FEDA), a development-oriented subsidiary of the bank, has been launched with an initial US$100mn commitment from Afreximbank. It expands the bank’s offerings to include equity investments, says Benedict Oramah, chairman of the fund and president of Afreximbank.

The Mauritius-headquartered fund is tasked with implementing Afreximbank’s equity investment programme by providing seed capital to companies within a range of sectors, including agriculture, manufacturing, consumer and retail, financial services, technology, travel and tourism, transport and logistics, and industrial parks.

It will specifically target SMEs and activity that supports intra-African trade and value-added exports. The fund will also provide related financial, non-financial and support services.

FEDA’s aim is to invest US$10mn and raise a further US$450mn in foreign direct investment by the end of the year.

The news follows Afreximbank’s launch of a range of other programmes to support intra-African trade. This focus has become increasingly relevant in light of the formation of the African Continental Free Trade Area (AfCFTA), which was agreed in March and is now being ratified across the continent. Currently, it has the backing of 49 of the 55 African Union member states, with nine countries having ratified it to date.

One of the bank’s recent initiatives is Mansa, a customer due diligence platform introduced last year. The platform seeks to provide a single source of primary data required for financial institutions to conduct know your customer checks on counterparties in Africa, making it easier and more cost-effective for them to onboard African business.

Afreximbank has also launched its new Pan-African Payment and Settlement Platform, which facilitates the clearing and settlement of intra-African trade transactions in African currencies. The hope is that it will significantly reduce the dependence on US dollars and other hard currencies in the settlement of regional trade.

Other members of FEDA’s new board include Jean-Louis Ekra, former president of Afreximbank, Vishwanathan Shanker, CEO of the private equity fund Gateway Partners, and Sidi Ould Tah, director-general of the Arab Bank for Economic Development in Africa.

Login to post comments
back to top

BEAMED BC-TV

Latest on Economy

Economy

Libya government partners with World Ban…

21 February, 2019 | Hits:15

The World Bank Group has announced a new strategy ...

Economy

IFAD, Egypt sign $81 million deal to pro…

21 February, 2019 | Hits:11

The International Fund for Agricultural Developmen...

Economy

Jack Ma’s US$10 Million Africa Netpreneu…

21 February, 2019 | Hits:9

The Africa Netpreneur Prize Initiative (ANPI) will...

Economy

Lean Africa Consultants arranges infrast…

21 February, 2019 | Hits:15

Nairobi-based consulting firm Lean Africa Consulta...

Economy

South African Airways to separate into t…

21 February, 2019 | Hits:15

South Africa’s national carrier, South African Air...

Economy

Innova to open $40 million plant in Keny…

20 February, 2019 | Hits:16

Innova Eco Building System has entered into a join...

Economy

170 000 register to grow tobacco

20 February, 2019 | Hits:22

Tobacco grower registrations for the 2019 marketin...

Economy

FAO alerts on Desert Locust outbreak in …

20 February, 2019 | Hits:25

Heavy rains and cyclones have triggered a recent s...

Economy

UN raises alarm on drought crisis in SAD…

20 February, 2019 | Hits:26

Gaborone- The United Nations has warned of a loomi...

Economy

Angola has significant production of man…

20 February, 2019 | Hits:27

According to the official who was speaking at the ...

Economy

Wheat consumption rising in Africa

20 February, 2019 | Hits:21

Africa has been a fast-growing grain import market...

Economy

Azuri and FirstBank partner to bring sol…

19 February, 2019 | Hits:25

Azuri and First Bank of Nigeria Limited have annou...

Economy

Nigeria, India pledge deeper collaborati…

19 February, 2019 | Hits:26

Nigeria and the Republic of India have pledged to ...

Economy

South Africa: Africa Energy Indaba 2019 …

19 February, 2019 | Hits:21

The much-anticipated Africa Energy Indaba, held in...

Economy

African Leaders Support Dangote, Imoukhu…

19 February, 2019 | Hits:33

Jonathan Eze and Chris Uba Heads of Government acr...

Economy

Are East Africa's business laws scaring …

19 February, 2019 | Hits:19

East Africa’s regulatory environment and its inves...

Economy

Ethiopia and Djibouti to build gas pipel…

19 February, 2019 | Hits:104

Ethiopia has signed a deal to develop a gas pipeli...

Economy

Western Union introduces new payment opt…

18 February, 2019 | Hits:33

The Western Union Company, a player in cross-borde...

Economy

Mauritius most connected country in Sub …

18 February, 2019 | Hits:26

Global logistics company DHL has released the fift...

Economy

Agriculture task force takes aim at EU i…

18 February, 2019 | Hits:31

An expert group convened by the European Union to ...

By Category

Local News

User Menu

About Us

Follow Us