African Export–Import Bank announces Major Financing for CARICOM Member-States

GEORGETOWN, Guyana, November 2, 2023 - President and Chairman of African Export–Import Bank (AFREXIMBANK), Professor Benedict Oramah, has announced a raft of development initiatives for the Caribbean and Latin America with the provision of financing to support accelerated infrastructural development projects in the region.

Speaking at the opening of the African-Caribbean Trade and Investment Forum (ACTIF) in Georgetown, Guyana, Professor Oramah said the Egypt-headquartered AFREXIMBANK would be offering US$500 million to Guyana to fast-track the development of  its infrastructure and double the lending limit to US$3 billion for all Caribbean Community (CARICOM) member-nations.

Professor Oramah said that the money to Guyana would be used by the government to “support accelerated infrastructural development projects many of which were in need of “bridge financing.”

He noted that the Fund for Export Development in Africa and Access Bank Group Nigeria would jointly invest in the financial services sector in Guyana and the rest of the Caribbean.

The AFREXIMBANK Chairman pointed out that Barbados would receive funding to revitalise its tourism sector; climate adaptation interventions in St Lucia; Small and Medium Enterprise support and development in The Bahamas; tourism projects in Grenada, and renewable energy projects and trade finance in St Kitts and Nevis.

He also reiterated that the financial institution would increase its lending limit to CARICOM countries from US$1.5 billion to US$3 billion when more countries of the region ratify the partnership treaty. Twelve of CARICOM’s 15 countries have inked the treaty and eight have ratified it.

As a result of five trade missions to signatory CARICOM member-nations in recent months, the AFREXIMBANK President said there were now more than US$2 million in pipeline deals.

The Caribbean Development Fund is now a shareholder in AFREXIMBANK and, according to Prof Oramah, his financial institution plans to become a shareholder of up to 49 percent in a planned CARICOM EXIMBANK “if invited to”.

Also on the cards are the joint establishment of a US$200 million renewable energy facility with Eastern Caribbean states and a special tourism revamp facility in which AFREXIMBANK would invest up to US$300 million with regional and national agencies with an emphasis on “local content”.

“Interest rates are high and are making things difficult for many to access funding in the Caribbean and, of course, Africa. AFREXIMBANK understands this problem and is doing its utmost to help,” he said.

The bank is likely to extend a US$1 billion concessional finance window, which was approved by its board in June, 2023, to CARICOM and eventually non-CARICOM Caribbean territories.

He said an African Trade Centre would be established in Barbados, the home of the bank’s Caribbean office, before the end of 2024. 

He said the centre would host the permanent Caribbean office as well as a hotel, technology and innovation centre,trade information centre, and conferencing and distribution facilities.

The two-day confluence, anchored under the theme ‘Creating a Shared Prosperous Future’, heralded a new era of cooperation aimed at enhancing trade and investment avenues for nations across Africa and the Caribbean.

Permanent Secretary of Guyana’s Foreign Ministry, Elizabeth Harper read the group’s resolution which  highlighted an ardent call to global bodies like the African Union, CARICOM, and the Organisation of Eastern Caribbean States to fortify African-Caribbean political relationships to propel economic alliances, bilateral trade, and the pivotal concept of establishing an African Caribbean free trade zone.

The forum echoed a unanimous voice for fostering partnerships with stalwarts like the African Business Council, the CARICOM private sector, and the International Trade Centre. Their combined vision is the operationalization of the African Caribbean Business Council, designed as a nucleus for private sector amalgamation.

Over the span of ACTIF23, the dedication to mutual growth was evident. African and Caribbean governments and their business counterparts inked several groundbreaking agreements. These spanned diverse sectors: from energy and tourism to logistics, construction, agriculture, sports and the burgeoning creative industries.

The AfriCaribbean Trade and Investment Forum was introduced in 2022 to enhance the growth of trade and investment between Africa and the Caribbean, including promoting airlinks, tourism, technology transfer, financial stability, food security, industrialization and cultural ties. 

The inaugural event held in Bridgetown, Barbados, welcomed over 1,267 delegates from 108 countries, including participants from 50 African countries, 13 Caribbean countries, and regions as far away as Oceania.