Afreximbank provides $400m to ETG to drive agricultural productivity and resilience
African Export-Import Bank (Afreximbank) formally announced the approval of a US$400 Million revolving global credit facility agreement in favour of ETG. Afreximbank, Africa’s foremost multilateral trade finance institution, commented that the agreement will enable ETG to keep playing its vital role in the agri-foods supply chain of efficiently connecting African farmers to markets, as well as expanding access to key inputs to boost agricultural productivity in a continent with tremendous but yet unrealized potential.
According to Afreximbank’s estimates, Africa spent over $90 billion on food imports in 2019, even though it possesses up to 60 percent of the world’s remaining arable land. Moreover, the Food and Agriculture Organization (FAO) estimates that up to 50 percent of Africa’s agricultural production is lost every year from farm-to-market due to problems ranging from sub-optimal use of inputs to improper post-harvest storage, processing and transportation facilities. These challenges have been exacerbated by the COVID- 19 pandemic, which has disrupted supply chains, heightened price volatility and could further undermine household consumption.
ETG will use this facility to expand on its yield-enhancing inputs distribution to optimize productivity of Africa’s produce and reduce post-harvest losses. In addition, the facility will enable the group to increase its robust networks to connect farmers, small-, and medium scale enterprises access to regional and international markets. It will also support the vital flow of food supplies across the continent amid the disruption triggered by the Covid-19 pandemic.
Chairman of ETG, Mr. Mahesh Patel, remarked upon completion: “ETG remains focused on uplifting farming communities by connecting smallholder farmers with international markets, expanding mechanization and processing capabilities, and increasing knowledge around quality inputs, irrigation, post-harvest techniques and yield-enhancing practices. It is humbling to partner with institutions such as Afreximbank, who shares my passion for Africa and its farmers.”
Anish Jain, ETG Chief Treasury Officer, commented: “This facility will help boost exports from Africa and support smallholder farmers to offer their produce to international markets. In addition, it will also boost inter-africa trade for staple commodities. ETG is elated to have this partnership with Afreximbank.”
Kanayo Awani, Managing Director of Afreximbank’s Intra-African Trade Initiative, said: “Afreximbank remains committed to supporting African nations navigate the COVID-19 pandemic; at the same time, we remain focused on boosting agricultural productivity and accelerating the diversification of exports to strengthen the resilience of African economies.
This facility will not only support African farmers through the disruption caused by the pandemic but will provide added impetus to ETG’s vital work connecting the continent’s small and medium businesses to the agricultural networks and avenues critical for growth. With the African Continental Free Trade Agreement on the horizon, the timing is opportune to shape a more productive and resilient agricultural sector— delivering both prosperity and food security for the continent’s future.”
About Afreximbank
The African Export-Import Bank (Afreximbank) is a Pan-African multilateral financial institution with the mandate of financing and promoting intra-and extra-African trade. Afreximbank was established in October 1993 and owned by African governments, the African Development Bank and other African multilateral financial institutions as well as African and non-African public and private investors. The Bank was established under two constitutive documents, an Agreement signed by member states, which confers on the Bank the status of an international organization, and a Charter signed by all Shareholders, which governs its corporate structure and operations. Afreximbank deploys innovative structures to deliver financing solutions that are supporting the transformation of the structure of Africa’s trade, accelerating industrialization and intra-regional trade, thereby sustaining economic expansion in Africa. At the end of 2019, the Bank’s total assets and guarantees stood at USD$15.5 billion and its shareholders funds amounted to US$2.8 billion. Voted “African Bank of the Year” in 2019, the Bank disbursed more than US$31billion between 2016 and 2019. Afreximbank has ratings assigned by GCR (international scale) (A-), Moody’s (Baa1) and Fitch (BBB-). The Bank is headquartered in Cairo, Egypt.
