Africa

A new Fund for Export Development in Africa

A new Fund for Export Development in Africa (Feda). New initiative of the African Import and Export Bank (Afreximbank).

With an initial budget of USD 100 million, its headquarters will be in Mauritius, while Kenyan banker Philip Kamau will be its director.

There are talks of mobilizing trade funds in Africa; in order to promote foreign direct investment (FDI), says the Trade Finance Bank of Africa.

According to Bénédict Oramah, Afrexibank’s Director: “The Feda’s long-term objective is to provide equity and related financial, non-financial and support services to operators in the tradable and support sectors in Africa, with a focus on activities that support intra-African trade and value-added exports”.

The Fund for the Development of Exports to Africa (Feda) is expected to begin its investment activities in 2019. It immediately targets an investment of USD 10 million, resulting from the mobilization of USD 450 million.

This is enough to stimulate intra-African trade, still at an embryonic stage of 15%, far behind Europe at 59%, Asia at 51% and North America at 37%, according to Afreximbank.

Source : africanews

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