Afreximbank Issues $1.5B to Support Trade Finance in the Caribbean
As per the latest news, the trade finance firm Afreximbank has issued $1.5 billion to aid Caribbean nations to access its services.
Remarking on the arrangement, the Cairo-based company stated that it followed the inclusion of nine Caribbean nations to its Afreximbank Partnership Agreement at the first Africa-Caribbean Trade and Investment Forum (ACTIF) in September.
The above-mentioned financing will enable these nations to access funding requirements like medical services, travelling industries, renewable energy, shipping, mining, farming and agribusinesses like air links and aquaculture. In addition to this, Afreximbank also strives to find ways to boost small businesses in these nations, as per the company.
“These important sectors were figured out following several Afreximbank-led business development and trade and investment promotion missions to the Caribbean.” as per the release.
Afreximbank, or African Export-Import bank, focuses on “Financing & supporting intra-and extra-African trade.”
In September, a payment service known as AfPAY was introduced by Afreximbank, created to bring easier transactions among African financial organizations.
“Afreximbank designed the service especially to resolve the banking complexities confronting African economies because of the withdrawal of many international banks from the region - it exists attributable to rigid administrative and compliance requirements along with costs.” as per the company in its declaration. “Trade is the vital factor for development, and bank’s inability to engage in trade transactions will lead to decreased growth in our economies and increased poverty.”
Afreximbank is among a group of pan-African banks established in the late-twentieth century to decrease Africa’s reliance on European institutions and financially sound governments and organizations in the region.
“Africa is generally falling behind when it comes to international trade, but in recent years, projects are focused on forming a more autonomous pan-African economy, many of them under the rubric of the African Union (AU), is approaching to resolve that equilibrium and secure a more thriving future for African,” we wrote.
A noticeable factor of the AU’s economic agenda is increasing the volume of trade between African nations and ensuring that the region’s wealth is genuinely circulated.
To this end, the United Nations Conference on Trade and Development (UNCTAD) earlier this year marked a Memorandum of Understanding with the African Continental Free Trade Area (AfCFTA) Secretariat to aid their joint contributions to support regional integration & development.
The AfCFTA is intended to cultivate stronger economic ties and lift intra-African trade by decreasing tariffs and other roadblocks to shipping goods between nations.
“With a definitive objective to lay out traditions associations similar to that found in the EU, the AfCFTA is the most aggressive endeavour at pan-African economic integration to date.”