Barbados, 14 March 2024: – The African Export-Import Bank (Afreximbank) is delighted to announce that it has successfully executed its first facility disbursement from its recently-established Caribbean Office in Bridgetown, Barbados. The disbursement is a US $6 million Education Rehabilitation Climate-linked Sovereign Term Loan Facility to the government of St. Lucia through its Ministry of Finance, Economic Development and Youth Economy.
The facility is a pilot by Afreximbank for its financing in the Caribbean Community (CARICOM) region following the approval granted by the Bank’s Board of Directors for a $1.5 billion limit for member states of the CARICOM. The facility will help in the infrastructure rehabilitation of St. Lucia, including 25 schools damaged during tropical storm Bret which affected the country in June 2023.
Commenting on the facility disbursement during a visit by the Afreximbank delegation led by Mr. Okechukwu Ihejirika, Acting Chief Operating Officer in charge of the Caribbean Office, Prime Minister Philip J Pierre of St. Lucia said that the facility would enable the country to ensure continued education and capacity building for its youth. Storm Bret has caused extensive damage to some schools’ infrastructure forcing many children to study under hazardous conditions. The team also toured Bishop Charles Gachet R.C. Primary School, which is scheduled to benefit from the disbursed facility.
Speaking on the significance of the disbursement, Prof. Benedict Oramah, President and Chairman of the Board of Directors of Afreximbank, said that the facility highlighted the Bank’s unwavering commitment to supporting member states during times of crises, ensuring financial stability.
“The facility underscores our proactive approach to addressing economic challenges and our commitment to joint efforts to close funding gaps, as well as promote trade and investments between Africa and the Caribbean,” added Prof. Oramah. “We are proud to have played a pivotal role in this achievement which stands to make significant contribution to St Lucia’s socio-economic development.”
St. Lucia’s tourism-dependent economy has faced significant economic challenges due to consecutive external shocks, including the COVID-19 pandemic, with the subsequent halt in tourism, which led to a 24 per cent decline in real GDP in 2020 and a notable increase in unemployment. The war in Ukraine has also added inflationary pressures due to St. Lucia’s reliance on fuel and food imports
St. Lucia recently signed and ratified the Afreximbank Partnership Agreement.
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About Afreximbank:
African Export-Import Bank (Afreximbank) is a Pan-African multilateral financial institution mandated to finance and promote intra-and extra-African trade. For 30 years, the Bank has been deploying innovative structures to deliver financing solutions that support the transformation of the structure of Africa’s trade, accelerating industrialization and intra-regional trade, thereby boosting economic expansion in Africa. A stalwart supporter of the African Continental Free Trade Agreement (AfCFTA), Afreximbank has launched a Pan-African Payment and Settlement System (PAPSS) that was adopted by the African Union (AU) as the payment and settlement platform to underpin the implementation of the AfCFTA. Working with the AfCFTA Secretariat and the AU, the Bank is setting up a US$10 billion Adjustment Fund to support countries to effectively participate in the AfCFTA. At the end of September 2023, Afreximbank’s total assets and guarantees stood at over US$33.4 billion, and its shareholder funds amounted to US$5.8 billion. The Bank disbursed more than US$104 billion between 2016 and 2023. Afreximbank has investment grade ratings assigned by GCR (international scale) (A), Moody’s (Baa1), Japan Credit Rating Agency (JCR) (A-) and Fitch (BBB). Afreximbank has evolved into a group entity comprising the Bank, its impact fund subsidiary called the Fund for Export Development Africa (FEDA), and its insurance management subsidiary, AfrexInsure, (together, “the Group”). The Bank is headquartered in Cairo, Egypt.
For more information, visit: www.afreximbank.com