Tuesday , August 16 2022

Le Matin – The new Moroccan ambitions in Afreximbank


African Export-Import Bank, Afreximbank, is preparing to increase its funding in the Moroccan market for the development of trade in Africa. Since its inception in 1994, Afreximbank's operations in Morocco amounted to approximately $ 100 million, almost $ 50 billion approved for African companies.

Afreximbank wants to speed up the Moroccan market. The African Export Import Bank is preparing to enter into a strategic partnership with the country in order to increase its support to Moroccan financial institutions and companies in favor of the development of trade and investment in Africa. "As a member, Morocco is a long-term partner for Afreximbank. By becoming the bank's shareholder in January 2018, however, the Kingdom needs to benefit from stronger support from Afreximbank. We are preparing this new phase of partnership. To this end, a large delegation, led by Afreximbanks president, arriving in Morocco in a few months to meet public and private decision-makers, including banks and business executives, said Matin-Eco, Amr Kamel. The Vice President of Business Development and Business Banking, Afrexim Bank, spoke on November 7 at the opening of a seminar on structured finance for trade organized in Casablanca by the bank in cooperation with the Ministry of Economy and Finance, according to him, the transactions recorded by Afreximbank on the Moroccan market amount to about $ 100 million. A modest sum compared to the bank's potential and the Moroccan economy, knowing that Afreximbank since 1994 ( start date of its business) has approved nearly $ 50 billion for African companies, of which 7.93 billion in 2017.

It should be noted that financial institutions are the main beneficiaries of the bank's lending operations in order to be able to play a role as trade finance intermediary.
The revival of Afreximbank in the Moroccan market can also be explained by the country's growing role in increasing trade and investment in Africa. According to Gerald Nsomba, Director of Afreximbank's Africa Trade Initiative, Morocco's trade in other Africa has increased on average by 12.8 percent annually since 1995. This is mainly due to the diversification of products imported and exported to 187 at present compared with 83 in 1995. Similarly, Morocco becomes increasingly a leading investor in Africa. About 50% of its foreign direct investment goes to the continent and makes it the leading intra-African investor. "Inter-African trade has great potential. The volume of trade between Africans reached $ 150 billion by 2017, which represents only 15% of total trade in the continent. The road to go is very important. The development of our continent is due to the strengthening of trade within Africa.
As such, access to competitive funding is one of the most important factors, "said Fouzia Zaaboul, CFO and External Ministry of Finance at the Ministry of Economic Affairs and Finance. "Afreximbank's initiative to be a center for excellence for trade finance in Africa is to be welcomed," she added.
As part of a new five-year "Impact 2021" plan, Afreximbank plans to pay more than $ 90 billion to support African trade between 2017 and 2021. Amongst the goals, it helps to increase internal African trade to $ 250 billion. dollar per year, which means that the share of internal African trade on the continent's total trade is growing to 24%.

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