Zim endorses Afreximbank’s export support fund

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By Alois Vinga

PRESIDENT Emmerson Mnangagwa has endorsed establishment of the Fund for Export Development in Africa (FEDA).

Zimbabwe is the sixth African country to give the initiative a nod.

FEDA is the impact investment subsidiary of the African Export-Import Bank (Afreximbank) set up to provide equity, quasi-equity, and debt capital to finance the multi-billion-dollar funding gap needed to transform the Trade sector in Africa.

This accession by Zimbabwe marks another significant step forward in the continental financier’s efforts to mobilise its member states to sign and ratify the Establishment Agreement of FEDA and also demonstrates the growing support for FEDA as a new multilateral development platform.

Following the announcement of its first close of US$ 670 million in September 2022, FEDA continues to build momentum for strategic interventions on the Continent.

Commenting on the development, President and Board Chairman of the Board of Directors of Afreximbank and FEDA, Professor Benedict Oramah commended the stance taken by Zimbabwe.

“The accession to the FEDA Establishment Agreement by Zimbabwe is an important step that will pave the way for the ratification of the Agreement in the coming months, thereby facilitating increased investment by FEDA in Zimbabwe.

“FEDA’s mandate is critical to African economies as it provides long term capital with a focus on industrialization, intra-African trade and value-added exports. We look forward to mobilizing other Afreximbank Member States in due time to support FEDA’s pan-African expansion,” he said.

FEDA CEO Marlène Ngoyi also commended the Southern Africa nation for the bold stance.

“Such a promising development builds on FEDA’s track record of investing in companies operating in Zimbabwe that are strategically aligned in promoting industrialization, intra-African trade and value-added exports,” she said.

She added that the investments include a corporation in the TMT sector that provides vital digital infrastructure to support Africa’s connectivity and trade with the rest of the world.

The move comes at a time when Harare is jostling to unlock capital and revamp exports after taking the first step of achieving relative exchange rate stability and easing inflationary pressures.