The African Export-Import Bank (Afreximbank) has reiterated that it will remain strong despite recent issues associated with the lender.
In his address at the opening of the Afreximbank Annual Meetings (AAM) held in Abuja on Wednesday, Senior Vice President Afreximbank, Mr Denys Denya, noted that at its establishment 32 years ago, Afreximbank faced a lot of resistance from within and outside the African continent but it has remained resilient.
Recall that earlier this month, Afreximbank faced heightened scrutiny and funding challenges following a Fitch downgrade over sovereign debt risks, disputed preferred creditor status in restructurings with countries like Ghana and Zambia, and growing concerns about its loan exposures and transparency.
In his words, he said, “I want to remind us that the establishment of Afreximbank was Africa’s response to the confluence of crisis during that time, but the establishment of afriximbank was also met with fierce resistance, both from within and without Africa.
“It was clear that those with that goal wanted to perpetuate the culture of dependence and hinder development of the continent that led such resistance. Notwithstanding the fearsome position to its creation, uncertainty has ascended into systemic relevance, supporting current clients and continental development escalations.”
“Over the last 32 years, Afreximbank has grown from modest beginnings to become a symbol of African financial fortitude, from an initial capital base of $750 billion relatively small amount by international standards, the bank has expanded its capital assets to over 40 billion.”
According to the VP, the 2025 Meeting would “consequential impact and alter the development trajectory of our continent.”
Giving insights into the Trade and Economic Oultlook, Afreximbank’s Chief Economist, Dr Yemi Kale, said despite the challenges, Africa remained resilient.
He said that in the face of the trade tariffs crises, “Our weakness in the global trade has reduced the impact of the global economic dynamics.”
He said the bank expected trade to increase, growth to continue and the average continental inflation rate to reduce from the current level of 19 per cent to about 15 per cent.
The report, he said, estimated growth at 4 per cent to be achieved through greater intra-African trade and more support from multilateral financial institutions in the region.