Afreximbank woos African investors with $30bn credit to exploit opportunities in Russia

Onome Amuge

The African Export–Import Bank (Afreximbank) has announced a credit limit of 30 billion dollars under the African Trade Exchange scheme to support African investors willing to exploit the business opportunities in Russia and promote easy flow of trade between Russia and Africa.

Benedict Oramah, the president and chairman, board of directors of Afreximbank, made the disclosure at the 2nd Russia-Africa Economic and Humanitarian Forum, in St Petersburg, Russia.

Oramah,in his presentation,  said the African Trade Exchange is a platform introduced by Afreximbank  to pool African demand for grains and fertilizers against which it has placed an aggregate credit limit amounting to three billion dollars to support the trade.

“The three billion dollars represents what is available and can be used on a revolving basis to support the significant demand for food and fertilisers on the continent of Africa,’’ he explained.

Oramah also expressed Afrixembank’s commitment  to offer trade services, easy confirmation facilities and payment services under the African Trade Exchange platform.

He further noted that through partnership with the Russia Export Center, Afreximbank will be able to support African investors who are willing to exploit the opportunities in Russia.

The Afreximbank president, who appreciated investments from Russia into Africa, expressed optimism that African investors would also invest in Russia, pointing out that the two way investments would accelerate trade flows and economic integration.

Speaking further, he said,“We projected moving two way trade to closer to 40 billion dollars by 2026, in the four years to 2021 the trade flows reached almost 20 billion dollars from about 10 billion dollars five years earlier. These are despite the COVID-19 pandemic and all the significant global difficulties.

“With the strong partnership between Afreximbank and Russia Export Center, we expect a doubling of the trade flows in the next four years.Some progress is being made and we believe that this is achievable.”

According to Oramah, the global food security challenges brought to the fore the critical role trade with Russia plays in guaranteeing Africa’s food security.

He noted that a significant proportion of African economies depend on Russia for the supply of fertilisers and 30 per cent of African cereal imports from Russia.

To this end, he emphasised ensuring that these trade flows continue remains the priority of Afreximbank and its African member states.

“That is why in the context of unprecedented global uncertainties, Afreximbank has been working with the African Union Commission, the United Nations System and our Russian partners to use the e-commerce African Trade Exchange.

“This will facilitate seamless flow of goods and payments in any currencies the sellers and buyers choose and in a transparent manner,’’ he said.

Oramah further disclosed that beyond the immediate food security priorities, Afreximbank and the Russia Export Center are collaborating to promote trade and investments in other critical sectors.

“This is with emphasis placed on those activities that will help integrate the African economy and advance the implementation of the African Continental Free Trade Agreement (AfCFTA),’’ he said.

The Afreximbank chairman also expressed the bank’s readiness to offer an array of products to support investments in agriculture, industrial sector, parks, health and other critical infrastructure.