Afreximbank mobilizes $250B to boost Africa’s trade, resilience, and sustainable growth

The Africa Export-Import Bank (Afreximbank), a leading multilateral financial institution dedicated to promoting and financing intra- and extra-African trade, has announced a monumental achievement: the mobilization of over $250 billion for Africa’s growth and development. This significant disclosure was made by the bank’s President, Professor Benedict Oramah, during the 32nd Afreximbank Annual Meetings (AAM), currently underway in Abuja from June 25 to 28, 2025. The staggering sum underscores Afreximbank’s pivotal role in bolstering the continent’s socio-economic resilience and fostering sustainable development.

Professor Oramah, addressing an esteemed gathering of African political leaders, policymakers, financiers, and private sector stakeholders, emphasized the bank’s relentless efforts to channel crucial funds into transformative projects across the diverse African landscape. “With the backing of the Nigerian Government and the collective efforts of all our stakeholders, we have positioned the Bank at the forefront of Africa’s socio-economic battle and rallied the support of political leaders and policymakers behind it,” he stated, highlighting the collaborative spirit that has defined Afreximbank’s journey.

The 32nd Annual Meetings serve as a crucial juncture for reflection on “over three decades of shared resilience, innovation, and transformation across the African continent,” as articulated by Prof. Oramah. His remarks painted a vivid picture of a financial institution that has not only provided capital but has also served as a steadfast pillar of support during times of profound global and continental crises.

A Legacy of Defiance: Afreximbank’s Genesis and Evolution

Afreximbank’s story began in 1993 with its establishment here in Abuja, Nigeria. Born out of a vision to promote intra-African trade and address the continent’s dependence on traditional, often restrictive, external financing, the bank’s mandate was clear: to stimulate and expand trade within Africa and with the rest of the world. In its nascent years, it functioned primarily as a regional trade financier, providing critical credit lines and guarantees to facilitate cross-border transactions.

Over its 32-year history, Afreximbank has undergone a remarkable evolution. It has transformed from a niche player into a “continental development anchor,” as described by Nigeria’s Vice President Kashim Shettima’s representative, Dr. Tope Fasua. This evolution reflects a growing understanding of Africa’s integrated developmental needs, where trade finance is inextricably linked with infrastructure, industrialization, and human capital development. The bank recognized early on that for trade to flourish, the underlying productive capacities and logistical frameworks needed robust financial support.

Prof. Oramah encapsulated this journey as “a story of defiance against doubt; of institution-building in the face of resistance, and of steadfast belief in Africa’s potential.” This sentiment resonates deeply with the challenges Africa has historically faced in attracting equitable investment and shaping its own economic narrative. Afreximbank has consistently challenged conventional perceptions, proving that strategic, well-managed financial institutions can indeed catalyze significant progress on the continent.

The Quarter-Trillion Dollar Impact: Mobilizing Capital for Africa’s Future

The “over $250 billion mobilized into Africa” over the past 32 years is a testament to Afreximbank’s comprehensive approach to development finance. It is important to understand that “mobilized” encompasses more than direct disbursements; it includes a range of financial instruments and interventions designed to unlock and leverage larger pools of capital:

• Direct Lending and Guarantees: Providing loans, guarantees, and indemnities to support trade-related projects, infrastructure development, and industrial ventures.
• Trade Finance Facilities: Offering specialized facilities for pre- and post-shipment finance, forfaiting, and factoring to ease trade transactions.
• Syndications and Partnerships: Working with other financial institutions, including commercial banks, development finance institutions (DFIs), and sovereign wealth funds, to co-finance large-scale projects, thereby de-risking investments and attracting broader participation.
• Advisory Services: Providing expert advice on project structuring, risk mitigation, and market opportunities to make African projects more attractive to investors.

Through these mechanisms, Afreximbank has empowered industries long neglected by conventional financiers. These often include sectors deemed too risky or requiring too long a gestation period by purely commercial banks, but which are vital for Africa’s industrialization and job creation. This strategic focus has been critical in addressing market failures and bridging financing gaps.

Furthermore, Afreximbank has demonstrated its capacity to serve as a “lifeline during crises.” This was profoundly evident during:

• The COVID-19 Pandemic: Afreximbank played a crucial role in providing liquidity support, procuring essential medical supplies, and financing vaccine acquisition for African nations, mitigating the devastating economic and health impacts of the pandemic. For instance, it launched the African Vaccine Acquisition Trust (AVAT) in partnership with the African Union to ensure equitable access to vaccines for member states.
• Commodity Shocks: Africa, largely dependent on commodity exports, is highly vulnerable to price fluctuations. Afreximbank has provided counter-cyclical financing to help countries manage revenue volatility during commodity price downturns.
• Broken Supply Chains: The bank has actively supported efforts to strengthen intra-African supply chains and reduce dependence on external markets, thereby building resilience against global disruptions. This aligns with the broader goals of regional value chain development.

Nigeria: A Pillar of Support and a Major Beneficiary

Nigeria’s relationship with Afreximbank is uniquely strong, stemming from the bank’s founding in Abuja. As Vice President Kashim Shettima stated, “Since its foundation here in Abuja in 1993, Afrexim Bank has grown from a regional trade financier into a continental development anchor.” He proudly declared that Nigeria remains “the biggest shareholders and biggest beneficiaries” of Afreximbank’s credit facility disbursements, having received over $52 billion so far out of the more than $100 billion disbursed across Africa (Note: Oramah’s figure of $250 billion refers to total mobilization, while Shettima’s $100 billion refers to disbursements, reflecting different financial metrics).

Shettima, through his special adviser Dr. Tope Fasua, highlighted several transformative projects that underscore Afreximbank’s “transformative footprint” in Nigeria:

1. African Trade Center, Abuja: Commissioned in Abuja, this center serves as a nucleus for policy innovation, trade facilitation, and business intelligence. It provides a hub for promoting intra-African trade, fostering business partnerships, and offering market insights for African enterprises. This is crucial for operationalizing the African Continental Free Trade Area (AfCFTA).
2. African Medical Center of Excellence (AMCE), Abuja: Opened just weeks ago, the AMCE is a state-of-the-art facility providing world-class medical services, particularly in oncology, cardiology, and dermatology. This initiative directly addresses the challenge of medical tourism, which sees Nigerians collectively spend over $1 billion annually seeking medical treatment abroad. The AMCE aims to retain this capital within the country and provide high-quality care locally.
3. African Quality Assurance Centers (AQACs) in Kaduna and Ogun States: These centers are vital for strengthening the export resilience of Nigerian products. By ensuring that Nigerian goods meet international quality and certification standards, the AQACs facilitate access to global markets, thereby boosting non-oil exports and diversifying the economy.
4. $300 Million Export Manufacturing Initiative: Strategically located in Cross River, Enugu, Imo, and Kano states, this initiative aims to catalyze industrial clusters. By providing financing and support for export-oriented manufacturing, it promotes local value addition, job creation, and the development of competitive industries.
5. Pivotal $3 Billion Intra-Africa Petroleum Trade Facility: This facility is crucial for enhancing Nigeria’s energy security and supporting domestic refining capacity. By facilitating trade in refined petroleum products within Africa, it reduces reliance on imports from outside the continent and supports the growth of indigenous oil and gas industries. This is particularly relevant given Nigeria’s efforts to revamp its local refineries.

“These are not merely projects,” Shettima concluded, “they are strategic investments in resilience, in sovereignty and in shared prosperity.” This encapsulates the long-term, systemic impact that Afreximbank’s interventions are designed to achieve.

Africa’s Vulnerability and the Call for Self-Reliance

Central Bank of Nigeria (CBN) Governor, Dr. Olayemi Cardoso, also present at the meetings, issued a compelling call to action. He urged African leaders, financial institutions, and the private sector to accelerate development initiatives that will curb the continent’s inherent vulnerability to external shocks.

Cardoso warned that “At a time of shifting geopolitical tensions and growing economic fragmentation, Africa must not remain vulnerable to external forces.” This echoes a broader pan-African sentiment that the continent must build robust, self-sustaining economies less susceptible to the whims of global politics and financial markets. Diversifying trade partners, building resilient supply chains, fostering local industrialization, and strengthening financial institutions are key strategies in achieving this. The ongoing conflicts and trade disputes globally underscore the urgency of this message.

Harnessing Diaspora Capital: A New Frontier for Development

One particularly innovative approach highlighted by Governor Cardoso is the strategic mobilization of diaspora remittances. He stated that the introduction of new diaspora-friendly financial products by the CBN is already boosting remittances into Nigeria. These include:

• Non-Resident Nigerian Ordinary Account (NRNOA): This account facilitates easy receipt of remittances and allows non-resident Nigerians to conduct various transactions in local currency within Nigeria.
• Non-Resident Nigerian Investment Account (NRNIA): This account is specifically designed to attract diaspora capital for investment in critical sectors of the Nigerian economy. It offers a structured pathway for Nigerians living abroad to contribute directly to national development while potentially earning returns on their investments.

Cardoso stressed that the goal of these investment accounts is to “harness the economic potential of Nigerians in the diaspora by boosting remittances and fostering investment in critical sectors of the economy.” Nigerians in the diaspora send billions of dollars back home annually, making remittances a significant source of foreign exchange and a crucial support for many households. By providing secure and attractive investment channels, the CBN aims to transform these remittances from primarily consumption-oriented flows into productive capital for development.

This initiative is also critical for Naira stability and economic growth. A consistent inflow of foreign currency from remittances helps to shore up Nigeria’s foreign exchange reserves, easing pressure on the Naira and contributing to its stability. A stable local currency is vital for attracting foreign direct investment (FDI), facilitating international trade, and curbing imported inflation, all of which are essential for sustainable economic growth.

The African Continental Free Trade Area (AfCFTA) and Afreximbank’s Future

Afreximbank’s ongoing efforts are deeply intertwined with the overarching ambition of the African Continental Free Trade Area (AfCFTA). The AfCFTA, launched in 2018, aims to create a single market for goods and services across 54 African countries, making it the largest free trade area in the world by the number of participating countries.

Afreximbank is a key financial enabler of the AfCFTA, providing the necessary trade finance, project finance, and payment solutions to facilitate cross-border commerce under the agreement. Its role includes:

• Pan-African Payment and Settlement System (PAPSS): Afreximbank is instrumental in establishing and operating PAPSS, a centralized payment and settlement system that enables instant, real-time, and affordable cross-border payments in local African currencies. This significantly reduces the reliance on hard currencies for intra-African trade, saving costs and boosting efficiency.
• Industrial Parks and Special Economic Zones: The bank finances the development of industrial parks and Special Economic Zones (SEZs) across the continent, which are crucial for attracting manufacturing investments, fostering value addition, and creating export-oriented industries that can thrive within the AfCFTA.
• Trade Information and Capacity Building: Afreximbank also provides trade intelligence and capacity-building programs to help African businesses understand and leverage the opportunities presented by the AfCFTA.

The success of the AfCFTA relies heavily on robust financial infrastructure and liquidity, areas where Afreximbank is making unparalleled contributions.

Conclusion: A Continent on the Rise, Powered by its Own Institutions

Prof. Benedict Oramah’s decade-long tenure as President of Afreximbank has been marked by bold initiatives and an unwavering commitment to Africa’s economic transformation. His deep exposure to the continent’s development challenges has evidently informed the bank’s strategic direction, focusing on innovative financing solutions and impactful projects.

Afreximbank’s journey, as celebrated at its 32nd Annual Meetings, is a powerful narrative of Africa building its own solutions. The mobilization of $250 billion is not just a financial figure; it represents countless businesses empowered, critical infrastructure built, lives saved during crises, and a future being forged with greater self-reliance. The specific projects in Nigeria—from the African Trade Center fostering policy innovation to the Medical Center of Excellence curbing medical tourism—are tangible examples of how this capital translates into real-world impact.

As Central Bank Governor Cardoso eloquently put it, “At a time of shifting geopolitical tensions and growing economic fragmentation, Africa must not remain vulnerable to external forces.” Institutions like Afreximbank, coupled with initiatives to harness diaspora capital, are fundamental to achieving this vision. They are enabling African leaders, financial institutions, and the private sector to accelerate development initiatives that fortify the continent against external shocks and unlock its immense potential. The story of Afreximbank is indeed a testament to the continent’s enduring spirit of resilience, innovation, and an unwavering belief in a prosperous, integrated, and self-determined African future. The path ahead will demand continued collaboration and strategic investment, but with institutions like Afreximbank at the helm, Africa’s economic renaissance appears increasingly assured.

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Photo source: Google

By: Montel Kamau

Serrari Financial Analyst

26th June, 2025