African Export-Import Bank (Afreximbank) has set up a trade finance facilitation programme to mitigate the stringent compliance and regulatory requirements imposed by international banks on African banks for trade confirmation lines.
The bank’s Director and Global Head, Communications and Events Management Department, Mr Obi Emekekwue, in a statement issued today quoted the bank’s Executive Vice-President for Business Development and Corporate Banking Amr Kamel, as making the disclosure while unveiling the programme in Cairo.
He projected that the new trade facilitation programme packaged in consultation with executives from 24 banks and a representation from the Korean Exim Bank would save and transform African trade.
Kamel expatiated that the programme had been structured to enhance the confidence of counter-parties in the settlement of international trade transactions for intra-and extra Africa trade and to improve correspondent banking relationships.
The banker pointed out that the programme became imperative in view of the stringent requirements being set by international banks for African banks which had resulted in the reduction or withdrawal of trade lines to African banks.
He noted further the strict conditions had aided in confirming banks that had risk capital and capacity constraints to support trade finance transactions.
The development finance expert said “The programme will enhance confidence among African banks and boost Egypt-Africa trade and intra-African trade, thereby decreasing the trade finance gap in the continent due to stringent regulations and high compliance costs”.
He listed the participating banks in the programme as, Abu Dhabi Islamic Bank, Ahli United Bank (Egypt), Al Ahli Bank of Kuwait, Alex Bank, Arab Bank, Arab International Bank, Arab Investment Bank, Attijariwafa bank, Banque du Caire, Banque Misr;Blom Bank; Commercial International Bank and Credit Agricole Egypt.
Others include, Egyptian Gulf Bank; Emirates NBD, Export Development Bank of Egypt; First Abu Dhabi Bank; Mashreq; National Bank of Egypt,QNB Al Ahli, Societe Arabe Internationale de Banque, Suez Canal Bank, The United Bank and Union National Bank.
Afreximbank was established in October 1993 by African governments, African private and institutional investors, and non-African investors, to finance and promote intra-and extra-African trade.
