- The African Export-Import Bank (Afreximbank) is a multilateral financial institution that was established in 1993 with the primary objective of promoting and financing trade within Africa and between Africa and the rest of the world.
- In these notes, we will discuss the history, features, functions, and activities of Afreximbank, with a specific focus on its activities in Zimbabwe.
History of Afreximbank:
- Afreximbank was established in 1993 by African governments, African private sector, and African financial institutions, with the support of the African Development Bank (AfDB) and the United Nations Economic Commission for Africa (UNECA).
- The bank was created to provide financing and trade-related services to support African businesses, promote intra-African trade, and enhance Africa’s economic development.
Features/Characteristics of Afreximbank:
- Membership: Afreximbank has 54 African member countries, and its headquarters is located in Cairo, Egypt.
- Financial Resources: Afreximbank has financial resources that it provides to its member countries, including loans, guarantees, and trade finance facilities.
- Trade Finance: Afreximbank provides trade finance facilities to support trade between African countries and between Africa and the rest of the world.
- Advisory Services: Afreximbank provides advisory services to its member countries to help them improve their trade policies, enhance their trade infrastructure, and develop their trade-related skills.
Functions/Objectives of Afreximbank:
- Promoting Trade: The primary objective of Afreximbank is to promote and finance trade within Africa and between Africa and the rest of the world.
- Providing Financial Assistance: Afreximbank provides financial assistance to its member countries to support their trade-related activities, including import and export financing, and trade-related infrastructure development.
- Enhancing Africa’s Economic Development: Afreximbank contributes to enhancing Africa’s economic development by promoting trade, creating jobs, and generating income.
Examples of Afreximbank Activities in Zimbabwe:
- Financial Assistance: Afreximbank has provided significant financial support to Zimbabwe, including a $500 million loan in 2018 to support the country’s foreign currency needs and a $1.5 billion facility in 2021 to support the country’s economic recovery.
- Trade Finance: Afreximbank has provided trade finance facilities to Zimbabwean businesses to support their trade activities, including import and export financing and working capital financing.
- Advisory Services: Afreximbank has provided advisory services to the Zimbabwean government and businesses to help them improve their trade policies, enhance their trade infrastructure, and develop their trade-related skills.