Non classé

Afreximbank enters into USD 100 million trade credit agreement with Rawbank

The African Export-Import Bank (Afreximbank) announced, on Friday, June 14, 2024, the conclusion of a $100 million commercial credit agreement in favor of Rawbank, the largest commercial bank in the Democratic Republic of Congo (DRC). This financing facility aims to boost the country’s trade by supporting imports and exports to and from the DRC. The agreement marks a significant partnership between Afreximbank and Rawbank, expected to improve access to trade finance and ease pressure on the country’s balance of payments. Through AFTRAF, Afreximbank’s trade finance program, Rawbank will benefit from a new source of liquidity to support its trade activities and meet growing customer demand.

The African Export-Import Bank (Afreximbank) concluded a $100 million commercial credit agreement with Rawbank on Friday. Through this facility, Afreximbank aims to help Rawbank increase trade flows to and from the Democratic Republic of Congo (DRC).

This facility, the largest ever granted by Afreximbank to a commercial bank in the DRC, is also expected to help reduce pressure on the country’s balance of payments by utilizing the trade finance instrument offered under the Afreximbank Trade Finance Facility (AFTRAF). It will also provide business opportunities for Rawbank and its clients while supporting the economic development of the DRC.

Speaking at the signing ceremony held during the Afreximbank Annual Meetings (AAM2024), Haytham Elmaayergi, Executive Vice President of Afreximbank in charge of the Global Trade Bank, highlighted the facility’s contribution to supporting the economic development of the DRC.

« We are very pleased to deploy this important facility in the DRC to support such a strategic partner as Rawbank, » said Mr. Elmaayergi. « We look forward to strengthening our partnership with Rawbank to support the DRC’s economic development. Our synergies can only help build the Africa we want by leveraging the full potential of intra-African and global trade for the benefit of our people. »

He stated that AFTRAF is structured to provide trade confirmation services, trade confirmation guarantees, and irrevocable reimbursement undertakings to clients. Mr. Elmaayergi added that the program is designed to counter the recurring trend of reducing or withdrawing trade lines to African banks by international banks due to risk mitigation processes.

Speaking at the signing ceremony, Didier Tilman, Vice President of Rawbank in charge of business development, said: « This day marks a major milestone for Rawbank and for the Democratic Republic of Congo. This agreement with Afreximbank not only represents a substantial capital injection into our trade finance capabilities but also a testament to the trust placed in Rawbank as a major actor in economic growth and trade facilitation in the region. »

This credit facility will offer new business opportunities to Rawbank and its clients while supporting the economic development of the DRC. By promoting international trade, this partnership will enhance the competitiveness of the Congolese private sector and stimulate the country’s economic growth.

The $100 million commercial credit agreement between Afreximbank and Rawbank represents a significant milestone in strengthening trade relations between the pan-African financial institution and the largest commercial bank in the DRC. This partnership is expected to make a significant contribution to the promotion of international trade and the economic growth of the DRC in the years to come.

AAM2024, held alongside the third Africa-Caribbean Trade and Investment Forum (ACTIF2024), will conclude on Saturday, June 15.

About Afreximbank

The African Export-Import Bank (Afreximbank) is a pan-African multilateral financial institution dedicated to financing and promoting intra- and extra-African trade. For over 30 years, Afreximbank has deployed innovative structures to provide financing solutions that facilitate the transformation of Africa’s trade structure and accelerate industrialization and intra-regional commerce, thus supporting economic expansion across the continent. A strong advocate of the African Continental Free Trade Area (AfCFTA), Afreximbank launched the Pan-African Payment and Settlement System (PAPSS), which has been adopted by the African Union (AU) as the payment and settlement platform to support AfCFTA implementation.

In collaboration with the AfCFTA Secretariat and the AU, the Bank established a $10 billion Adjustment Fund to help countries effectively participate in the AfCFTA. As of the end of December 2023, the Bank’s total assets and guarantees stood at approximately $37.3 billion, with shareholders’ equity of $6.1 billion. Afreximbank is rated A by GCR International Scale, Baa1 by Moody’s, A- by Japan Credit Rating Agency (JCR), and BBB by Fitch. Over the years, Afreximbank has evolved into a group consisting of the Bank, its impact investment subsidiary the Fund for Export Development in Africa (FEDA), and its insurance management subsidiary AfrexInsure (collectively, “the Group”). The Bank is headquartered in Cairo, Egypt.

About Rawbank

Rawbank has been supporting the development of the Congolese economy for 20 years. It offers the most modern products and services to over 500,000 clients (corporates, SMEs, and individuals) through a network of 100 branches across 19 provinces in the country, including Greater Katanga, Greater Kasaï, both Kivus, Équateur, and Kongo Central. This extensive network is complemented by a representative office in Brussels and 300 ATMs. With more than 1,800 employees, Rawbank holds over 30% market share. Strength, profitability, and sustainability are Rawbank’s priorities in consolidating its growth strategy. Its efforts have been recognized with the award for Best Regional Bank in Central Africa by the African Bankers Awards in 2022 and 2024, a Moody’s CAA 1 rating, and ISO/IEC 20000 and ISO/IEC 27001 certifications.