Afreximbank, ITFC Sign $250 Million Finance Facility to Support Africa

ADDIS ABABA – African Export-Import Bank (Afreximbank) and the International Islamic Trade Finance Corporation (ITFC) on Wednesday signed a $250 million facility.

The facility will provide funds for the Bank to advance procurement of Covid-19 vaccines and drive a trade-based economic recovery, said Afreximbank.

The agreement was signed between Benedict Oramah, President of Afreximbank and Hani Salem Sonbol, CEO ITFC, at the Corporation’s Headquarters in Jeddah.

Afreximbank said the facility will help advance its COVID-19 response program for countries in which both organisations operate, securing vital goods for the health of local populations and enabling a swift return to economic activity.

The Facility “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,” said the President of Afreximbank.

The facility is expected to promote employment, increase economic activity, and expand tax receipts by stimulating economic dynamism, according to Afreximbank.

“ITFC and Afreximbank through this facility mark another milestone in our mutual mandate to support the recovery of our member countries, especially in Africa,” CEO Sonbol said.

The partnership between the two institutions commenced in 2017 with the signing of the first trade financing agreement with the aim of facilitating and financing exports among African countries and between Africa and the rest of the world.

Last year, they also expanded the cooperation with another financing facility as part of the Covid-19 Response Package for the support of the Agriculture Sector in Africa.

Featured Image Caption: Afreximbank President Prof Benedict Oramah (left) and Eng. Hani Salem Sonbol, CEO ITFC (right) [Photo Afreximbank]