Banque Misr becomes largest non-sovereign shareholder in Afreximbank with $201m investment

Egyptian private bank, Banque Misr has become the largest non-sovereign shareholder of the continental Afreximbank.

In a press release copied to Ghana Business News, Afreximbank said Banque Misr is investing a total of $201 million equity in the continental development bank. According to the release, $80.5 million is paid-in.

“The investment has made Banque Misr the largest non-sovereign shareholder of Afreximbank. This equity investment is a positive and strategic response to the ongoing General Capital Increase by Afreximbank. Banque Misr has thereby increased its stake in Afreximbank from 3.1 per cent to 5.8 per cent,” it indicated.

The release states that in July 2021, Afreximbank embarked on a $6.5 billion General Capital Increase, of which $2.6 billion is paid-in, to enhance capacity to deal with transitory pandemic challenges confronting Africa while promoting medium-to-long term sustainable trade and economic development on the continent.

It said, specifically, the investment will equip the Bank to continue to support the procurement of COVID-19 vaccines for the continent, bolster post-pandemic recovery efforts for the economies of African nations and drive the implementation of the African Continental Free Trade Agreement (AfCFTA).

Commenting on the investment, Prof. Benedict Oramah, President and Chairman of the Board of Directors of Afreximbank, said, “We are particularly grateful for Banque Misr’s support for the General Capital Increase, as it will significantly contribute to the Bank’s capacity to drive ongoing Covid-19 recovery efforts, support the implementation of the (AfCFTA), while continuing to strongly support Egypt’s trade with the rest of African as well as promote and finance intra-African trade and export development.”

“Banque Misr appreciates the tremendous efforts carried out by Afreximbank in fostering the development of African economies. We, amongst other Egyptian institutions, strongly believe in the bank’s mission, which is evident in the Egyptian side’s representation in the bank’s capital with a c. 28 per cent stake and being one of the top 10 contributors of capital. We look forward to the continuous mutual cooperation between Afreximbank and Banque Misr as we are strategically aligned in terms of our holistic view on the numerous opportunities in Africa,” the Vice Chairperson of Banque Misr, Akef ElMaghraby said.

Banque Misr was started in 1920.

By Emmanuel K. Dogbevi

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