Governor Addison emphasizes Afreximbank’s vital role in Africa’s post-pandemic recovery and trade expansion
In a keynote address delivered at the 30th Anniversary celebration of the African Export and Import Bank (Afreximbank), Dr Ernest Addison, the Governor of the Bank of Ghana (BoG), underscored the crucial contributions that Afreximbank can make towards Africa’s recovery from the pandemic. The event, held under the theme “Delivering the Vision: Building Prosperity for Africans,” provided a platform for Dr Addison to reflect on Afreximbank’s potential to accelerate intra-African trade, enhance Africa’s global trade performance, promote industrial development, and attract capital flows to the continent.
Over the past three decades, Afreximbank has transformed into a premier supranational financial institution, playing a pivotal role in championing African trade and driving growth across multiple sectors on the continent. The bank’s impact is evidenced by its numerous interventions, including substantial investments in infrastructure to support intra-African trade, strategic investments in agriculture and industry, trade facilitation initiatives, trade guarantee and advisory services, as well as country-specific programs aimed at assisting nations facing economic challenges. Moreover, Afreximbank has been at the forefront of introducing innovative platforms such as the MANSA repository platform, the Pan African Payments and Settlements Systems (PAPSS), and the Intra-African Trade Fair (IATF), all aimed at improving and facilitating trade within Africa.
Dr Addison took the opportunity to highlight some of Afreximbank’s noteworthy achievements. One such accomplishment is the establishment of the Trade Impact Mitigation Facility platform, through which Afreximbank provided robust support during the COVID-19 pandemic. The bank disbursed over US$8 billion to central banks and commercial banks, effectively averting trade debt payment defaults. Additionally, a portion of these funds was utilized for procuring vital supplies such as test kits, personal protective equipment (PPEs), and other materials crucial for containing the spread of COVID-19 within Afreximbank’s member states.
Another significant milestone for Afreximbank was its substantial disbursement of over US$20 billion in support of intra-African trade and investments ahead of the implementation of the African Continental Free Trade Area (AfCFTA) in 2021. The bank has projected to double this figure to an impressive US$40 billion by the end of December 2026. Such substantial financial support demonstrates Afreximbank’s commitment to fostering economic integration and trade facilitation across the African continent.
Dr Addison highlighted Ghana’s fruitful and productive relationship with Afreximbank throughout the years. Notable collaborations include Afreximbank’s initial participation in a syndicated loan to the Ghana Cocoa Board, which marked the bank’s first official deal. Moreover, Afreximbank provided essential support to Ghana’s Volta River Authority in 2014 to enhance energy generation and played a pivotal role in resolving the energy crisis that plagued the country during that period.
The Bank of Ghana has also enjoyed a strong working relationship with Afreximbank, as the institution facilitated foreign exchange swap arrangements with Ghanaian banks to bolster foreign exchange liquidity and support international trade activities. In a recent show of support during Ghana’s economic crisis, Afreximbank agreed to extend a US$750 million loan facility to the country to finance capital growth-related expenditures outlined in the 2022 Budget. Over the years, these collaborative efforts between Ghana and Afreximbank have resulted in the disbursement of over US$2 billion to support various development and trade-related initiatives, thereby contributing to Ghana’s socio-economic progress.
Dr Addison concluded by commending Afreximbank for its remarkable achievements and reaffirmed the Bank of Ghana’s commitment to further strengthening the partnership between the two institutions. The governor emphasized the importance of continued collaboration and innovation to drive Africa’s post-pandemic recovery and foster sustained economic growth across the continent.
Dr Ernest Addison’s address at Afreximbank’s 30th Anniversary celebration shed light on the vital role the bank plays in Africa’s recovery process, trade expansion, and industrial development. Afreximbank’s significant interventions, innovative platforms, and financial support have positioned it as a key catalyst for growth in the region. As Africa navigates its path to economic prosperity, the Bank of Ghana Governor’s remarks serve as a testament to the valuable contributions of institutions like Afreximbank in shaping a more prosperous future for the African continent.
