Afrexim Bank to invest in Kenya-based companies


Capital markets

Afrexim Bank to invest in Kenya-based businesses


Afreximbank Headquarters in Cairo, Egypt. PHOTO | COURTESY | AFREXIMBANK

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Summary

  • Afrexim, which finances and promotes African trade, says it will work with government and the private sector to fund various projects in need of funding.
  • Over the past decade, Afreximbank has financed several important local transactions, including a debt to the national carrier Kenya Airways.

The African Import and Export Bank (Afrexim Bank) wants to inject money into Kenyan companies in various sectors, as the Pan-African lender sees an increased role in the Kenyan economy.

Afrexim, which finances and promotes African trade, says it will work with government and the private sector to fund various projects in need of funding.

“We are looking to provide support in different areas,” said Afrexim Director and Global Head of Client Relations Rene Awambeng.

Over the past decade, Afreximbank has financed several important local transactions, including a debt to the national carrier Kenya Airways.

The regional lender focuses on private and public sector loans, guarantees and advisory services. Its range of finance programs and advisory services includes trade and project finance, as well as export development guarantees.

In 2019, Uganda struck a deal with Afreximbank to set up its regional headquarters in Kampala, ending a three-year offer to set it up in Nairobi after being dragged down by Kenya. The regional commercial bank had previously said Kenya’s reluctance to grant it diplomatic status forced the agency to court Kampala.

Mr Awambeng said the regional office has helped the bank better serve its regional clients in East Africa.

“The bank has a strategy to bring its business closer to its employees … The office has helped improve assets in the region,” he said.

Afrexim last year established a $ 3 billion credit facility in March to help African countries weather the effects of the pandemic.

The Daily business has learned that Kenya has not used the facility, although it has indicated that it is initially prepared to operate it.

The Pandemic Trade Impact Mitigation Mechanism would help countries avoid trade defaults, support foreign exchange reserves, and help commodity exporters struggling with declining incomes.

“Africa is exposed on many fronts, including significant declines in tourism income, migrant remittances, commodity prices and disruptions to manufacturing supply chains,” Benedict said at the time. Oramah, president of the Cairo-based bank.

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