Oramah: FEDA gaining strong foothold across Africa

The Fund for Export Development in Africa (FEDA) has taken a significant step towards revolutionizing investment opportunities across the continent with the official opening of its office in Kigali, Rwanda. The subsidiary of the African Export-Import Bank is dedicated to fostering development impact and advancing investments in Africa. In an exclusive interview with CNBC Africa's Derrick Muhangi, Benedict Oramah, the President of Afrexim Bank, shed light on the critical role FEDA is set to play in bridging the equity investment gap in Africa and its strategic partnerships aimed at propelling economic growth and development. FEDA's establishment in Rwanda marks a monumental milestone that positions the fund to make a profound impact not only in Rwanda but also across the African continent. With a clear vision and robust partnerships in place, FEDA is poised to drive sustainable development and transformation across various sectors, from industrialization to healthcare and beyond. Let's delve into the key themes, challenges, and partnerships surrounding FEDA's expansion and its potential to reshape Africa's investment landscape. Aiming to address the $110 billion equity investment gap on the continent, FEDA stands out as a beacon of hope for impact equity funding in Africa. With a focus on patience, technical support, and long-term investments, FEDA fills a crucial void that traditional private equity funds often overlook. By leveraging its multilateral status and strategic partnerships, FEDA is equipped to navigate the uncertainties of the African market and attract capital without compromising on returns. Oramah highlighted the importance of stable macroeconomic and socio-political environments for FEDA's success, and the fund's unique tax exemption advantage sets it apart in the investment landscape, enabling it to focus on sustainable growth rather than chasing high returns. The challenges ahead for FEDA include raising additional capital to realize its vision of becoming a $5-10 billion fund. Despite lingering pessimism in the investment sphere, Oramah expressed confidence in FEDA's ability to attract investors and continue its profitable trajectory through prudent risk management and impactful investments. Through its solid track record and commitment to sustainable growth, FEDA is well-positioned to overcome obstacles and drive positive change in Africa's investment ecosystem. FEDA's strategic partnerships encompass a broad spectrum of stakeholders, from African member states to potential investors worldwide. With 15 member states currently on board and a vision to expand further, FEDA's partnership model is designed to support the African free trade agreement and promote economic inclusivity across the continent. By nurturing relationships with diverse investors and companies, FEDA is paving the way for transformative initiatives in industrialization, healthcare, digital infrastructure, and more. The fund's collaborations with entities like Arise Integrated Industrial Platform, Liquid Telecom, and TND Mauritania underscore its commitment to fostering innovation, sustainability, and economic empowerment. Additionally, FEDA's engagement with African multilateral financial institutions enhances collaboration and information sharing to collectively address common challenges and drive collective growth. As FEDA embarks on its journey to reshape Africa's investment landscape, its emphasis on inclusive partnerships, sustainable investments, and impactful development initiatives positions it as a catalyst for positive change and economic progress across the continent.