The African Export-Import Bank (Afreximbank) has disclosed plans to commit $200 million to support the Fund for Export Development in Africa (FEDA) which is to be headquartered in Rwanda.
This disclosure was confirmed during an exclusive interview with the New Times by Louise Kanyonga, the Chief Strategy, and Compliance at the Rwanda Development Board (RDB).
According to Kanyonga, “It is expected to have an initial commitment of $200 million from the bank. Rwanda is hosting the permanent headquarters of the fund.
“The Fund has been set up to implement Afreximbank’s Equity Investment Programme. It provides seed capital to companies operating in Africa, emphasising activities that would promote and facilitate intra-African trade, trade-related infrastructure and value-added exports, both goods, and services.
“The fund will soon be fully operational. There have been delays occasioned by the Covid-19 pandemic and the sad and untimely passing of the FEDA CEO Dr. Philip Kamau-however, business operations have progressed.”
The Fund for Export Development in Africa (FEDA) which was established in 2019 is an equity investment fund and a subsidiary of Afreximbank that seeks to fund African businesses to promote intra-African trade and facilitate foreign direct investment flows into the continent’s trade and export sectors.
According to Kanyonga, under the agreement, the Fund will, among others, benefit Rwandan and African businesses that fall within the priority areas for the fund.
“The Fund Management Company will determine business eligibility. More details will be made available once the fund becomes fully operational,” she said.
With the siting of the FEDA office in Rwanda as its headquarters, the country would soon turn into an international financial center, with Rwanda Finance Limited set up to take on the role.
This strategic move by Afrexim is the sequel to the successful launch of the African Continental Free Trade Area (AfCFTA) agreement.