Kenya & Afreximbank to sign $3bn to support development agenda

Kenya and Afreximbank have finalized a groundbreaking agreement worth $3 billion to bolster the country's development agenda. The funding is aimed at propelling critical sectors such as infrastructure, trade, and investment, fostering sustainable economic growth, and propelling Kenya towards its long-term development objectives. The announcement was made during the fourth African Sub-Sovereign Government Network (AFSNET) conference in Kisomo, Kenya, which focused on harnessing the benefits of the African Continental Free Trade Area (AfCFTA) for sustainable trade and investment. President William Ruto lauded Afreximbank's support for African governments, underscoring the institution's pivotal role in driving economic progress across the continent. President Benedict Orama of Afreximbank emphasized the importance of decentralization and AFSNET's contributions to promoting trade, investment, and grassroots development within the framework of the AfCFTA. Afreximbank pledged a substantial $2 billion to cater to the trade and investment financing needs of AFSNET member states, particularly focusing on supporting sub-sovereign government programs aligned with their financing criteria. President Ruto commended Afreximbank's innovative approaches in extending credit to African governments and the public sector, fostering deeper collaboration among sub-Saharan nations. He highlighted Kenya's increased investment of $40 million in Afreximbank, illustrating the country's commitment to growing African institutions that possess in-depth knowledge of the region's economies and can offer tailored support to bolster economic growth. The financial support from Afreximbank has been instrumental in various sectors of the Kenyan economy, including imports of fuel, commodities trade, and infrastructure projects. During the conference, agreements were finalized to further aid initiatives such as the pharmaceutical project, infrastructure support programs for roads, and the cotton value chain. These strategic collaborations aim to enhance local production, manufacturing, and offtake of cotton, ensuring reliable prices for farmers and fostering predictability in the sector. The innovative spirit driving these partnerships resonates with the goals of the AfCFTA, aiming to establish a dynamic network of forward-thinking institutions and governments that can drive transformative engagements at the grassroots level. By fostering peer-to-peer learning and cooperation among sub-sovereign governments, the forum facilitates collaborative efforts that position Africa strongly in the global value chains, contributing significantly to bottom-up transformation. Devolution, a cornerstone of Kenya's governance structure since the 2010 constitution, has been lauded as a success story that has decentralized services, empowered grassroots participation, and promoted equity in resource allocation. The government affirms its commitment to supporting devolution, ensuring timely disbursement of resources to counties while working closely with the Parliament to streamline funding processes. Afreximbank, as a Pan-African multilateral institution, continues to spearhead innovative initiatives to address Africa's financing needs. Through mechanisms like the Pandemic Trade Impact Mitigation Facility and the Fund for Export Development in Africa, the institution is committed to mitigating economic shocks, driving sustainable industrialization, and enhancing intra-African trade. The Pan-African payment and settlement system, championed by Afreximbank and endorsed by the Kenyan government, aims to eliminate currency challenges, promote trade in local currencies, and boost intra-African commerce, ultimately bolstering economic growth and stability across the continent.