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Recapitalization will enable Afreximbank lend to the private sector for jobs, business and free trade flow.
The COVID-19 pandemic in 2020 disrupted global economies and put strains on financial activities and Africa was a colossal victim.
Seeing the disruption, the continent is looking for ways to relaunch economies which is explored in its recent survey.
Afreximbank surveys the impact of COVID-19 on trade financing in Africa
The Africa Development Bank (AfDB) engaged in a maiden survey alongside the United Nations Economic Commission for Africa, UNECA and Africa Export-Import Bank (Afreximbank) on the constraints of the Africa trade financing.
- CBN, Afreximbank to utilise PAPSS to improve trade and payment
- Africa building payment platform for trade to sustain AfCFTA before common currency
The survey discusses commercial banks constraints, trade finance constraints and how to make finance work in Africa.
The group – AfDB, UNECA and Afreximbank – is working towards providing additional financing to increase the capital of the Afrexim bank so that the bank can lend more.
According to Vera Songwe, there is a focus on the private sector as they are important in creating jobs. For the group, the work that they are doing is about reducing poverty and creating jobs.
The group sees the private sector as the bridge between resources and jobs. The private sector are the middle men in rescitating the economy and lending to banks, SMEs will expedite developmental processes.
- Nigeria is a low ranking country in the overall regional integration of Africa
- Steps to begin a profitable cement production business in Nigeria now
The global community is getting together to print $650 billion Special Drawing Rights, SDR and Afrixim bank is getting $33.6 billion of SDR. Hopefully, this will help increase the capital of Afrexim bank.
Afreximbank can use some those SDRs to lend to Central Banks in Africa as well as Ministers of finance of trade and economy.
