July 18, 2024
Afreximbank announces historic capital increase to bolster African development

Afreximbank announces historic capital increase to bolster African development

The African Export-Import Bank (Afreximbank) has announced a historic increase in its capital.The institution revealed that its shareholders have approved a fivefold expansion of the bank’s capital, escalating from $5 billion to $25 billion.

This significant capital boost underscores Afreximbank’s commitment to supporting trade across the continent and internationally, enhancing its capacity to fund large-scale projects that drive economic development.

The bank, a key player in promoting intra-African trade and facilitating global trade partnerships, sees this move as crucial for its strategic ambitions.

“This decision provides us with the necessary flexibility to mobilize the capital needed to create a bank that serves all Africans,” said Benedict Oramah, President and CEO of Afreximbank.

He emphasized that the increased capital will empower the bank to extend its reach and impact, providing more substantial financial support to African businesses and governments.

Afreximbank is also looking towards foreign investments to support its expansive vision, with a particular interest in attracting Russian capital.

George Elombi, Executive Vice-President of Afreximbank, recently highlighted the importance of Russian investment in an interview with Sputnik Afrique, urging Russian companies to adopt a more proactive approach in investing in Africa.

“The Russian businesses need to be more aggressive in their investments to help in the continent’s development,” Elombi stated, reflecting the bank’s strategy to diversify its funding sources and foster international partnerships.

The decision to quintupling its capital comes at a time when Africa is poised for rapid economic transformation, driven by initiatives such as the African Continental Free Trade Area (AfCFTA).

By significantly increasing its financial resources, Afreximbank aims to play a pivotal role in this transformation, supporting infrastructure projects, industrial development, and trade facilitation efforts that are essential for sustainable growth.

This strategic capital increase is expected to have far-reaching implications, not only enhancing the bank’s financial stability but also positioning it as a central institution in the continent’s economic landscape.

The move will enable Afreximbank to offer larger and more diverse financial products, tailored to the specific needs of African economies.

With the newly approved capital expansion, Afreximbank is set to deepen its impact on African development, leveraging its enhanced financial capacity to drive growth and prosperity across the continent.

This bold step forward reaffirms the bank’s dedication to fostering a resilient and dynamic African economy, capable of competing on the global stage.

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