Boosting Arab-Africa Trade: Afreximbank and BADEA are Supporting the Effort
In a significant move towards promoting trade and economic development across Africa, the African Export-Import Bank (Afreximbank) and the Arab Bank for Economic Development in Africa (BADEA) have signed a line of credit agreement.
The agreement, worth US$50 million, will target sectors such as energy, industry, and agriculture, aiming to foster growth and investment in these critical areas. The signing of the line of credit was announced by Afreximbank President, Benedict Oramah, who emphasised that the agreement demonstrates BADEA's commitment to working with Afreximbank for the development of the African continent and the promotion of Arab-Africa trade.
The memorandum of understanding, which provides a framework for co-operation between the two institutions, is part of BADEA's program for financing foreign trade. However, the statement did not provide further details about the specific instruments or programmes to be created.
The line of credit is not the only collaboration between the two banks. In recent years, both institutions have been actively participating in major African economic forums, such as the 2025 African Development Bank Annual Meetings held in Abidjan, Côte d'Ivoire. This joint engagement underscores their commitment to continental development agendas and fostering collaboration for growth and trade enhancement in Africa.
While the details of the second agreement, another memorandum of understanding between the two institutions, were not disclosed, it is known that the cooperation includes funding of private sector projects and trade finance operations. However, the statement did not mention any new funding for these operations.
The visit to BADEA's headquarters was made by an Afreximbank delegation, further highlighting the strategic partnership between the two institutions. The general trend emphasises boosting Africa’s trade finance capabilities and economic self-reliance, as advocated by African leaders who urge strengthening institutions like Afreximbank and BADEA to reduce dependency on external financial systems and encourage continent-led development.
Oramah also mentioned that the two institutions are expected to create instruments and programmes to accelerate Arab-Africa trade and investment. However, the timeline for the creation of these instruments and programmes was not specified in the statement.
In summary, the recent collaborative efforts between BADEA and Afreximbank involve joint appearances at major African financial forums promoting SME growth, innovation, and intra-African trade development. Their collaboration underlines a strategic partnership framework to leverage their respective capacities to finance and support Africa’s economic development and trade expansion. The specific new joint programs or projects between BADEA and Afreximbank were not detailed in the available information.
Sustainable trade between Arab and Africa regions may be facilitated through collaboration between Afreximbank and BADEA, as the agreement aims to foster growth in critical sectors such as energy, industry, and agriculture. The financial aspects of this collaboration, including trade finance operations and funding of private sector projects, are expected to contribute to the self-reliance of Africa's economy.
