The African Export-Import Bank (Afreximbank) plans to double its intra-African trade financing from US$20 billion in 2021 to US$40 billion by 2026. This bold move underscores the bank’s determination to deepen economic ties across the continent and bolster the implementation of the African Continental Free Trade Area (AfCFTA).
Afreximbank is backing several major initiatives alongside this funding boost. It is supporting the AfCFTA Adjustment Fund, contributing US$1 billion, plus a US$10 million grant to help operationalize the fund. The bank is also collaborating with the AfCFTA Secretariat and the African Union Commission on projects such as the Pan-African Payments and Settlements System, the African Trade Gateway, and a transit guarantee scheme to smooth cross-border trade.
Speaking on the financing push, Afreximbank’s Director for Trade Facilitation and Investment Promotion said: “we are on course to double this to $40 billion by 2026.” The trade-financing instruments being used include the Global Facility for Intra-African Trade Champions and an Export-Projection Coverage (EPC) initiative.
To support small traders and businesses, the bank has launched the African Trade and Distribution Company (ATDC) with US$1 billion in capital. The ATDC will focus on logistics, aggregation, and market intelligence, helping small and medium enterprises (SMEs), informal cross-border traders, and large corporations to participate more fully in intra-African commerce.
Afreximbank’s own financial health gives it firepower for this ambitious agenda: by the end of 2024, its total assets rose to US$40.1 billion, backed by a strong net income and capital raise.
Yet the push is not without risk. Credit rating agencies have expressed concern: Moody’s downgraded Afreximbank, noting a growing exposure to stressed sovereigns, while Fitch placed a negative outlook on the bank.
This $40 billion commitment could play a pivotal role in closing Africa’s annual trade finance gap, estimated at around US$100 billion. By boosting intra-African trade, Afreximbank aims to stimulate regional value chains, support industrialization, and reduce reliance on external markets.
