Gabon, Sierra Leone Accede to Establishment Agreement of Afreximbank’s Fund for Export Development in Africa (FEDA)

May 9, 2023
Category: Press Releases

Kigali, Rwanda, 02 May 2023 – The Fund for Export Development in Africa (FEDA), the development impact-focused subsidiary of African Export-Import Bank (Afreximbank), has announced the accession of the Gabonese Republic and the Republic of Sierra Leone to the Fund through their recent respective signing of the FEDA Establishment Agreement.

FEDA described the accession by the two countries as a significant milestone, which will strengthen its ability to provide crucial support to African economies and achieve its objectives effectively. The new memberships expand the reach of FEDA’s interventions and reflect the Fund’s unwavering commitment to its mandate of providing long-term capital to African economies with a focus on industrialization, intra-African trade and value-added exports.

In November 2022, FEDA invested in Arise Integrated Industrial Platforms (Arise IIP) in a significant step deepening the implementation of its mandate of promoting industrialization and value-added exports. The Gabon Special Economic Zone (GSEZ), developed by Arise IIP and focused on the timber industry, has enabled Gabon to transition from a mere log exporter to a leading global producer and exporter of veneer.

Similarly, the Government of Sierra Leone has partnered with Arise IIP to establish a Special Economic Zone in the country, further strengthening FEDA’s objective of promoting industrialization on the continent.

Professor Benedict Oramah, President of Afreximbank and Chairman of the Board of both Afreximbank and FEDA, said: “The signing of the FEDA Establishment Agreement by the Gabonese Republic and the Republic of Sierra Leone is a testament to the long-standing cooperation between Afreximbank and the respective countries. These developments establish the foundation for more coordinated intervention in the future.  FEDA’s mandate to provide long term capital, with a focus on industrialization, intra-African trade and value-added exports, makes the Fund a critical force for bringing prosperity for African economies.”

Marlène Ngoyi, CEO of FEDA, commented: “FEDA looks forward to a successful partnership with the Gabonese Republic and the Republic of Sierra Leone. We welcome the continued support from Afreximbank Member States, and we aim to mobilize more countries in due time to support FEDA’s pan-African outreach and intervention. The recent developments in the Gabon Special Economic Zone and the Special Economic Zone in Sierra Leone, under the Arise IIP investment, are strong demonstration of transformative investments that are well aligned with FEDA’s investment strategy.”

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About FEDA: The Fund for Export Development in Africa (“FEDA”) is the impact investment subsidiary of Afreximbank set up to provide equity, quasi-equity, and debt capital to finance the multi-billion-dollar funding gap (particularly in equity) needed to transform the Trade sector in Africa.

FEDA pursues a multi-sector investment strategy along the intra-African trade, value-added export development, and manufacturing value chain which includes financial services, technology, consumer and retail goods, manufacturing, transport & logistics, agribusiness, as well as ancillary trade enabling infrastructure such as industrial parks.

About Afreximbank: African Export-Import Bank (Afreximbank) is a Pan-African multilateral financial institution mandated to finance and promote intra-and extra-African trade. For the past three decades, Afreximbank has deployed innovative structures to deliver financing solutions that support the transformation of the structure of Africa’s trade, accelerating industrialization and intra-regional trade, thereby boosting economic expansion in Africa. A stalwart supporter of the African Continental Free Trade Agreement (AfCFTA), Afreximbank has launched a Pan-African Payment and Settlement System (PAPSS) that was adopted by the African Union (AU) as the payment and settlement platform to underpin the implementation of the AfCFTA. Afreximbank is working with the AU and the AfCFTA Secretariat to develop an Adjustment Facility to support countries in effectively participating in the AfCFTA. As of 2022, Afreximbank’s total assets and guarantees stood at over US$31 billion, and its shareholder funds amounted to US$5.2 billion. The Bank disbursed more than US$86 billion between 2016 and 2022. Afreximbank has investment grade ratings assigned by GCR (international scale) (A), Moody’s (Baa1), Japan Credit Rating Agency (JCR) (A-) and Fitch (BBB). Afreximbank has evolved into a group entity comprising the Bank, its impact fund subsidiary called the Fund for Export Development Africa (FEDA), and its insurance management subsidiary, AfrexInsure, (together, “the Group”).