Afreximbank targets $60b total assets in six years
The African Export-Import Bank (Afreximbank) is targeting total assets of $60 billion over the next six years from current $30 billion achieved within its 30 years of existence.
The bank, which commenced operations in 1993 with less than $150 million in total assets and with almost an equal amount of equity, has blossomed into an institution with about $30 billion in total assets and guarantee and about $6 billion in its shareholders’ funds.
At the 30th anniversary celebration and yearly general meeting of the financial institution in Accra, Ghana, yesterday, President and Chairman of the Board of Afreximbank, Prof. Benedict Oramah, said the organisation has remained financially strong since inception, as it has also disbursed over $100 billion in the last three decades.
His words: “It took the bank 30 years to reach $30 billion in total assets and guarantee. I look ahead with confidence and declare that the bank will double its size to $60 billion in less than six years.
“I make this projection with faith in your trust and confidence, and also because we commence the journey into the next 30 years on a platform of a ‘mother’ that has birthed many offspring, offering services from project preparation to market access.”
Oramah said the improved performance and milestone achieved by the bank are indications that huge opportunities exist Africa, and a prove that developmental work can be done profitably without any doubt.
According to him, Afreximbank’s history is a clear indication that Africa can only develop in the direction it chooses, by having a well-resourced and professionally run institutional arrangements it manages and controls.
Reviewing its performance, Oramah said the bank is currently connecting African businesses with the opportunities in the Caribbean and those of the Caribbean with Africa.
For instance, he pointed out that the Pan-African Payment and Settlement System (PAPSS) is up and would save the continent $5 billion in intra-African transfer charges.
“It is now possible for a Gambian to buy Nigerian urea fertilisers using Gambian Dalasi, a young Ghanaian to pay for holiday in Seychelles in Ghanaian Cedi, and for a small farmer in rural Zambia to stream her favourite Nollywood movie paying in Zambian Kwacha. “
Oramah observed that Afreximbank is doing much to support the African Continental Free Trade Area (AfCFTA) implementation, noting that the bank has disbursed over $20 billion over the past five years with plans to double this to $40 by 2026.
“We are also working with African Regional Standards Organisation (ARSO) to harmonise trade standards across Africa. Using Afreximbank’s mobilised grant, over 155 standards have been harmonised, covering priority areas of automobile, medical equipment and pharmaceuticals, while work on textiles is ongoing,” he added.
Also speaking, President of Ghana, Nana Akufo-Addo stressed the need for Africa to build strong financial institutions. This, he noted, would boost the continent’s industrialisation move and make it more resilient to global shocks.
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