Summit: Afreximbank extends credit ceiling of $3 billion to Africans wanting to invest in Russia

The African Export-Import Bank (Afreximbank) announced a credit ceiling of $3 billion on Thursday in St Petersburg, Russia, to assist African investors looking to capitalise on possibilities in Russia.

Dr Benedict Oramah, President and Chairman of the Board of Directors of Afreximbank, stated this during the opening session of the 2nd Russia-Africa Economic and Humanitarian Forum.

The Nigerian News Agency (NAN) is a media partner of the Russia-Africa Summit 2023, and its Managing Director, Mr Buki Ponle, is also in attendance.

According to Oramah, the African Trade Exchange programme will facilitate trade between Russia and Africa.

“The African Trade Exchange is a platform that we use to pool African demand for grains and fertilisers, against which Afreximbank has placed a three-billion-dollar credit limit to support the trade.”

“The three billion dollars represent what is available and can be used on a revolving basis to support the continent’s significant demand for food and fertilisers,” he said.

Oramah further stated that by partnering with the Russia Export Centre, Afreximbank will be able to assist African investors looking to capitalise on possibilities in Russia.

While praising Russian investments in Africa, Putin expressed hope that African investors will also invest in Russia.

He believes that by making two-way investments, we may expedite trade flows and economic integration.

“We projected moving two-way trade to closer to 40 billion dollars by 2026, with trade flows reaching nearly 20 billion dollars in the four years to 2021, up from about 10 billion dollars five years earlier.”

“This is despite the COVID-19 pandemic and all of the significant global difficulties,” said Max Air’s new CEO, Mangal.

‘With Afreximbank and Russia Export Center’s solid relationship, we anticipate a doubling of trade volumes in the next four years.

“Some progress is being made, and we believe that this is achievable,” Oramah stated.

The Afreximbank President went on to say that global food security concerns highlighted the crucial role trade with Russia plays in ensuring Africa’s food security.

He stated that a substantial amount of African countries rely on Russia for fertiliser supplies, and that Russia accounts for 30% of African cereal imports.

According to him, securing the continuation of these trade flows is a top priority for Afreximbank and its African member countries.

“Afreximbank has been working with the African Union Commission, the United Nations System, and our Russian partners to use the e-commerce African Trade Exchange in the context of unprecedented global uncertainties.”

“This will enable the seamless flow of goods and payments in any currency chosen by the sellers and buyers, in a transparent manner,” he said.

Oramah stated that Afreximbank is ready to provide trade services, quick confirmation services, and payment services through the African Trade Exchange platform.

“We look forward to continuing this effort with our Russian partners and to using this platform to ease access to grains and fertilisers,” he said.

Oramah, who stated that 300 million Africans go hungry every day, underlined the importance of securing food security.

“It is critical that we all do our best to ensure that food security is achieved until we begin to achieve food sovereignty.”

“Aside from the immediate food security priorities, Afreximbank and the Russia Export Centre are collaborating to promote trade and investments in other critical sectors,” says Coy.

“This is with a focus on activities that will aid in the integration of the African economy and the implementation of the African Continental Free Trade Agreement (AfCFTA),” he stated.

Oramah stated that the bank is ready to provide a variety of products to promote investments in agriculture, the industrial sector, parks, health care, and other important infrastructure.

“By the end of the summit, I hope that Russia and Africa will have strengthened their solidarity and laid the groundwork for rebuilding the supply chains for grains and fertilisers trade, which are currently strained.”

“This is important so that the billions of dollars in trade can continue,” he said. (NAN)