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Oliver Kazunga, Senior Business Reporter
THE African Export-Import Bank has launched a US$6,5 billion General Capital Increase (GCI) initiative to broaden the bank’s capacity to deliver on its core mandate and diversify a range of services.
In a statement, AfreximBank said the GCI will enhance its capacity to support the procurement of Covid-19 vaccines for the continent, bolster post-pandemic recovery efforts for the economies of African nations and drive the implementation of the African Continental Free Trade Agreement, among other strategic initiatives.
“African member States are expected to contribute up to US$1,5 billion as paid-in capital (US$3,9 billion in callable capital) to meet their total contribution under the GCI,” it said.
“The bank’s board of directors opened the GCI to other shareholders of the bank to contribute up to US$1,1 billion to enable them to participate pro-rata to their shareholding in AfreximBank, bringing the total size of the GCI to US$6,5 billion (of which US$2,6 billion will be paid-in).”
The GCI was approved by AfreximBank shareholders during their 28th annual meeting held in July this year.
AfreximBank expects to double its annual lending capacity and balance sheet size during the next five years, thereby further contributing to the reduction of the existing annual trade finance gap in Africa. – @KazungaOliver
Bongani Ndlovu