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Afreximbank pledges US$3B to CARICOM States upon full treaty ratification
Kaieteur News – The African Export-Import Bank (Afreximbank) has committed to making US$3 billion available to members of the Caribbean Community (CARICOM), contingent upon all member nations ratifying a recently inked partnership treaty. As of now, the bank has approved a lending limit of US$1.5 billion.
The announcement was made by Prof. Benedict O. Oramah, President and Chairman of the Board of Directors of Afreximbank, during the Second AfriCaribbean Trade and Investment Forum being held at the Marriott Hotel from October 30-31, 2023.
In a stirring address, Oramah noted the historical significance of Africa’s relationship with the Caribbean. Referencing the words of iconic Reggae artist Bob Marley, he said, “Four Hundred (400) years ago, the continent of Africa was plundered, and its people taken away, such that as our brother, Bob Marley said, ‘by the sweat of my brow, eat your bread’.”
He emphasized the momentum gained since the First Forum was held in Barbados last year. “In just under a year, eleven of the 15 CARICOM Member States had signed the Partnership Treaty, and eight had ratified, which made the Treaty effective in months, not years,” Oramah stated.
Prof. Benedict O. Oramah, President and Chairman of the Board of Directors of Afreximbank
He then detailed some of the bank’s accomplishments over the past year, which includes multiple trade and investment missions leading to a pipeline of about US$2 billion in deals across CARICOM. He said too that there have been significant transactions approved or are nearing approval for countries like Barbados, St. Lucia, the Bahamas, Grenada, and St. Kitts and Nevis in diverse sectors ranging from tourism and renewable energy to trade finance.
The Chairman also pointed out Afreximbank’s role in attracting African investments in fisheries, renewable energy, ports, and tourism. Notably, he said during the event, agreements are set to be inked for some of these financial endeavors.
Further elaborating on the efforts to strengthen financial collaboration, Oramah mentioned, “Afreximbank’s Pan-African Payment and Settlement System (PAPSS) has been chosen for a pilot programme for CARICOM Central banks. We hope that one day the Payment Systems of Africa and the CARICOM will be integrated.”
Kaieteur News understands that PAPSS is an initiative by the African Export-Import Bank (Afreximbank) in collaboration with the African Union. Its primary purpose is to facilitate intra-African trade and commerce by providing a centralized payment and settlement infrastructure for trade and other financial transactions within the continent.
During his address, the Chairman highlighted the August 2023 opening of Afreximbank’s Caribbean Office in Barbados and announced plans for developing the Africa Trade Centre in Barbados, which will host the permanent Caribbean office and offer a range of services, from trade information to conferencing facilities.
He also noted that a significant revelation was the intention to create a CARICOM Eximbank. Toward this end he said the Afreximbank has full approval to fund the feasibility studies. He said, “…we in management are willing to motivate up to 49 percent of the equity that may be required if CARICOM States invite Afreximbank to participate.”
Professor Oramah concluded his address by emphasizing the challenges ahead, from global interest rates to geopolitical tensions. He also underscored the importance of unity in the face of these adversities.
“In a de-globalizing world, Small Open Economies will suffer if they don’t bind together, and there can be no better binding than that of brothers and sisters, as represented by AfriCaribbean trade and investment integration,” he stressed.
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