The African Export-Import Bank (Afreximbank) has urged African banks to improve their trade lines with their foreign counterparts by keying into its trade facilitation programme, tagged, AFTRAF.
Mr Obi Emekekwue, the bank’s Director and Global Head, Communications and Events Management Department, gave the advice in a statement on Wednesday.
Emekekwue quoted Fatma Bao, Afreximbank’s Manager for Guarantees and Specialized Finance Unit as giving the advice during a roadshow to introduce AFTRAF to banks in Dakar.
Bao said that the programme was structured to enhance confidence of counterparties in the settlement of international trade transactions for critical imports into Africa.
According to her, the programme supports intra-African trade and facilitate the purchase of equipment for production of export goods.
She said that the programme was being offered to African financial institutions in response to the increasing de-risking of African banks as a result of stringent compliance and regulatory requirements imposed by international banks.
She described the programme as Afreximank’s response to the recurring trend of reduction or withdrawal of trade lines to African banks by the international banks following de-risking processes.
“Afreximbank wants to understand the needs of the Senegalese market (hence the roadshow in Dakar) and the current obstacles facing the financial market.
“The roadshow was part of a strategy to allow Afreximbank expand its coverage of Africa and to onboard Senegalese banks to the AFTRAF programme.
“It also aims to enhance cooperation between Afreximbank and the local banks in order to grow the nation’s economy,” Bao said.
She said that similar roadshows were being planned for several other African countries.
Afreximbank is the foremost pan-African multilateral financial institution devoted to financing and promoting intra- and extra-African trade.
The bank was established in October 1993 by African governments, African private and institutional investors, and non-African investors.
It is rated BBB+ (GCR), Baa1 (Moody’s), and BBB- (Fitch). The bank is headquartered in Cairo.
