Afreximbank partners with international financial institutions to support African economies

AFRICA – The African Export-Import Bank (Afreximbank), has partnered with other Multilateral Financial Institutions and international financial institutions to launch a US$1.5 billion Collaborative COVID-19 Pandemic Response Facility (COPREFA) to support African economies with rapid financial assistance to reduce the impact of COVID-19.

The International Islamic Trade Finance Corporation (ITFC), the Trade Finance Arm of the Islamic Development Bank (IsDB) Group; and the Arab Bank For Economic Development in Africa (BADEA), are co-financing, risk sharing of transactions and promoting integrated trade solutions, to support African economies on navigating the impact of COVID-19.

COPREFA will be accessed by eligible central banks, commercial banks and businesses to finance the import of medical supplies, as well as agricultural equipment and fertilizers essential for addressing the pressing food production deficit.

“The COVID-19 pandemic has devasted many economies. Africa has not been spared. Afreximbank’s priority has always been to step-up when markets fall,” Prof. Benedict Oramah, President of Afreximbank, said.

“COPREFA, a product of a unique international partnership, is a major contribution to the global fight against the pandemic and will work alongside our other programs to ensure Africa’s future remains bright beyond this economic shock.”

Prof. Benedict Oramah, President of Afreximbank

“That is why we are supporting African economies forcefully at the time of great difficulties. COPREFA, a product of a unique international partnership, is a major contribution to the global fight against the pandemic and will work alongside our other programs to ensure Africa’s future remains bright beyond this economic shock. We thank our partners for the confidence.”

COPREFA is also designed to support African economies to overcome a myriad of challenges, including commodity price shocks, a significant drop in tourism, and disruption to supply chains and export manufacturing.

It will also address the sudden declines in financial flows, including a drop off in trade and project finance, migrant remittances, portfolio investment and Foreign Direct Investments.

ITFC has worked extensively since the very start of the COVID-19 outbreak to provide comprehensive support to some of the most vulnerable countries,” Eng. Hani Salem Sonbol, CEO of ITFC, said.

“The multilateral arrangement that ITFC is embarking upon with our strategic partners will boost economic activity when and where it is needed most and help many countries maintain food security at a time when global commodity supply chains are being challenged and import activity sharply reduced.”

In March 2020, a financial package called the Pandemic Trade Impact Mitigation Facility (PATIMFA) was launched solely by Afreximbank to support economies through the pandemic – a facility of which over US$5 billion has been disbursed, will be implemented alongside COPREFA.

DFI’s as the Arab Bank for Economic Development in Africa (BADEA), with its partners, have been and will always be; supporting the continent through tough and good times as a reliable, strong  and resourceful financial institution,” Dr. Sidi Ould TAH, Director General of BADEA, said.

“BADEA has joined the fight against the pandemic by allocating a gross amount of more than USD 350 million in the COPREFA and other initiatives. These allocations will be utilized to ease the negative impacts of the pandemic on African economies and ensure the flow of essential strategic commodities to the continent.”

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