Nov. 10, 2021

The African Export-Import Bank (Afreximbank) and the International Islamic Trade Finance Corporation (ITFC), have signed a 250 million dollar facility to provide funds for the bank to advance procurement of COVID-19 vaccines.

A statement issued by Afreximbank on Wednesday, said that the agreement was signed between Prof. Benedict Oramah, President of Afreximbank and Mr Hani Sonbol, CEO ITFC in Jeddah, Saudi Arabia.

According to it, the fund would also drive a trade-based economic recovery.

It said that the ITFC facility would help advance Afreximbank’s COVID-19 response programme for countries in which both organisations operate, securing vital goods for the health of local populations and enabling a swifter return to economic activity.

“The facility will also enhance the bank’s capacity to provide trade finance resources at a time of critical need for the continent’s export development and industrialisation.

“The agreement extends Afreximbank’s co-operation with ITFC, the leading provider of trade solutions for Organisation of Islamic Cooperation (OIC) member countries, with both organisations working to promote trade cooperation and demonstrate the benefits of South-South cooperation.

“The enhancement of regional trade cooperation and reinforcement of trade between African and Arab nations promises significant economic opportunities and remains a strategic goal of both parties”, it added.

It also significantly facilitates Afreximbank’s execution of strategic interventions by promoting employment, increase economic activity and expansion of tax receipts by stimulating economic dynamism.

The statement quoted Oramah as saying that “the facility agreed between Afreximbank and the ITFC will allow us to scale-up our impactful interventions in African trade finance as well as our continent’s response to the COVID-19 pandemic.

“Africa’s long-term economic growth must be outward-looking as much as intra-continental and today’s agreement reflects a desire among leaders from both Arab and African trade finance institutions to increase our collaboration.”

Meanwhile, Sonbol said that the facility marks another milestone in both organisations’ mutual mandate to support the recovery of its member countries, especially in Africa.

“Delivering vaccines to the continent is a prerequisite to saving African lives and livelihoods, safely reopening economies and resuming their economic development agenda.”

The statement recalled that the partnership between both organisations commenced in 2017 with the signing of the first trade financing agreement with the aim of facilitating and financing exports amongst African countries and between Africa and the rest of the world.

It added that in 2020, ITFC and Afreximbank expanded the cooperation with another financing facility as part of the COVID-19 Response Package for the support of the Agriculture Sector in Africa. (NAN)