Tackling infrastructure gap in Africa
CNBC Africa’s Akinkunmi Obakeye spoke with Gwen Mwaba, Managing Director of Trade Finance & Correspondent Banking at Afreximbank.
Fri, 31 Jan 2025 16:44:25 GMT
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- Afreximbank's role in financing essential infrastructure projects across Africa, from ports and railways to energy infrastructure, to drive economic growth and intra-African trade.
- The institution's focus on facilitating trade through programs like ATEX and supporting importation of goods with services like letters of credit confirmation facilities.
- Afeximbank's efforts to engage the African diaspora by enabling investments back into the continent and providing support for trade flows between Africa and the diaspora.
Day two of the Africa Prosperity Dialogue in Ghana saw discussions centered around delivering Africa's single market through infrastructure investment, connectivity, and integration. CNBC Africa's Akinkunmi Obakeye had a conversation with Gwen Mwaba, the Managing Director of Trade Finance & Correspondent Banking at Afreximbank, to shed light on the institution's efforts to tackle the infrastructure gap in Africa. As the theme of the dialogue focused on infrastructure, Mwaba highlighted Afreximbank's significant role in financing various infrastructure projects across the continent. From ports, airports, and railways to roads and energy infrastructure, Afreximbank has been actively supporting sovereigns in delivering essential infrastructure that is crucial for driving economic growth and fostering intra-African trade. Mwaba emphasized the importance of not only building physical infrastructure but also facilitating the financing of trade that would run on these networks. Through programs like the Africa Trade Exchange (ATEX) and Pan-African Payments and Settlements system, Afreximbank is creating avenues for seamless cross-border trade, even allowing transactions to be conducted in local currencies to address the foreign currency shortage in certain markets. Furthermore, the institution offers services like letters of credit confirmation facilities to support the importation of goods, especially capital goods and equipment needed for manufacturing in Africa. Mwaba also discussed Afreximbank's engagement with the African diaspora, highlighting the institution's focus on enabling Africans in the diaspora to invest back on the continent. By supporting trade flows between Africa and the diaspora and facilitating investments in various sectors by diasporans, Afreximbank is contributing to fostering economic ties and driving development across industries. Addressing the challenge of the infrastructure gap in Africa requires collaborative efforts between governments and financial institutions like Afreximbank. Mwaba stressed that while investing in infrastructure projects is crucial for development, there is also a need to support project preparation and provide patient capital for projects to thrive. Afreximbank's project preparation facility assists African investors in developing bankable feasibility studies, which are essential for securing project financing. Moreover, the Fund for Export Development (FEDA), Afreximbank's private equity arm, offers patient capital to support projects that require equity-type funding. By catering to the diverse needs of infrastructure projects and fostering a conducive environment for investment, Afreximbank is playing a pivotal role in closing the infrastructure gap in Africa and promoting sustainable development.