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Afreximbank renews $1b facility and approves $10m grant to operationalise AfCFTA Adjustment Funds 

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The Board of Afreximbank has renewed a $1 billion facility and approved a $10 million grant for the operationalization of the African Continental Free Trade Area (AfCFTA) Adjustment Fund.

In a press release copied to Ghana Business News, the Bank said at the 134th meeting held on June 13, 2022, the Board of Directors renewed their approval of a S$1 billion facility to operationalise the AfCFTA Adjustment Funds. The Board also approved a Grant Funding of $10 million to seed the Base Fund of the AfCFTA Adjustment Funds.

According to Afreximbank, the AfCFTA Adjustment Funds consists of the Base Fund, the General Fund, and the Credit Fund.

The press release indicated that the Base Fund will be used to mobilise grants to address tariff revenue losses and to support AfCFTA State Parties to implement the various protocols under the AfCFTA.

The $10 million, it said, is seed funding to kick-start the establishment of the Base Fund.  The General Fund, it explained will be used to mobilise concessional funding, while the Credit Fund will be used to mobilise commercial funding that will be used to support the public and private sector including small and medium enterprises (SMEs), youth and women to adjust to the new trading environment arising from the AfCFTA.

Commenting, Professor Benedict Oramah, President, and Chairman of the Board of Directors of Afreximbank said: “Afreximbank is delighted to have been appointed the Fund Manager of the AfCFTA Adjustment Funds following the extensive collaborative work it has done with the AfCFTA Secretariat and the Africa Union Commission during the past few years. The renewal of the $1 billion facility and the $10 million grant funding represents resounding entrustment by our Board of Directors of these efforts. These facilities will again be contributing to making a great idea a reality. We thank the AfCFTA Secretariat for the solid partnership that is bringing the aspirations of the AfCFTA within reach.”

Mr. Wamkele Mene the Secretary General of the AfCFTA Secretariat said, “The endorsement by the Afreximbank Board brings the continent closer to operationalising the AfCFTA Adjustment Funds before the end of 2022. We urge other development partners and financial institutions to provide additional resources required under the Adjustment Funds to support the implementation of the AfCFTA”,

The release notes further that the AfCFTA Adjustment Fund will be managed by Afreximbank, through its subsidiary, the Fund for Export Development in Africa (FEDA), in collaboration with the AfCFTA Secretariat.

By Emmanuel K. Dogbevi

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