Nigeria Joins Afreximbank's African Export Development Fund

Nigeria has become the 16th country to sign the Establishment Agreement of the Fund for Export Development in Africa (FEDA), a development impact-oriented subsidiary of the African Export-Import Bank (Afreximbank). The signing marks a significant milestone in Nigeria's continued commitment to supporting Afreximbank and FEDA's missions of delivering long-term capital to African economies, with a focus on industrialization, intra-African trade, and value-added exports.

Why this matters: This agreement has the potential to stimulate economic growth and development in Nigeria and across Africa, promoting industrialization and intra-African trade. It also underscores the importance of collaborative efforts among African nations in driving economic growth and development across the continent.

The agreement comes three decades after Afreximbank's establishment in Nigeria and is expected to pave the way for the ratification of the agreement, bolstering FEDA's interventions in the country. Professor Benedict Oramah, President of Afreximbank and Chairman of the Boards of both Afreximbank and FEDA, expressed his appreciation for Nigeria's support, stating, "We extend our sincere appreciation to the Federal Republic of Nigeria for the signing of the FEDA Establishment Agreement. This significant achievement further strengthens the already robust partnership between Afreximbank and Nigeria, one of the bank's foremost supporters."

FEDA, the impact investment subsidiary of Afreximbank, was set up to provide equity, quasi-equity, and debt capital to finance the multi-billion-dollar funding gap needed to transform the trade sector in Africa. The fund aims to support economic growth and structural transformation on the continent by promoting the development of large-scale projects in key sectors.

Nigeria joins a growing list of African countries that have acceded to FEDA's Establishment Agreement, including Rwanda, Mauritania, Guinea, Togo, South Sudan, Zimbabwe, Kenya, Chad, Republic of the Congo, Gabon, Sierra Leone, São Tomé and Príncipe, Equatorial Guinea, Ghana, and Egypt. The increasing support for FEDA among African nations underscores the importance of collaborative efforts in driving economic growth and development across the continent.

Key Takeaways

• Nigeria signs Establishment Agreement for Afreximbank's Fund for Export Development in Africa (FEDA).
• FEDA aims to promote industrialization, intra-African trade, and value-added exports in Africa.
• Nigeria's accession to FEDA expected to stimulate economic growth and development in the country.
• FEDA provides equity, quasi-equity, and debt capital to finance Africa's trade sector funding gap.
• Nigeria joins 15 other African countries that have acceded to FEDA's Establishment Agreement.