19 Nov Rwanda to host continental export development fund
A new fund that was created by the African Export-Import Bank (Afreximbank) last year, Fund for Export Development in Africa (FEDA), will have its permanent headquarters in Rwanda.
According to a statement, the Bank will on November 22, sign agreements with the Government of Rwanda to host the fund, which seeks to fund African businesses to promote intra-African trade.
FEDA, a subsidiary of Afreximbank, is an equity investment fund designed to facilitate foreign direct investment flows into Africa’s trade and export sectors launched last year.
The signing ceremony, which will see Rwanda become a permanent home to the Fund, will be held at the Rwandan embassy in Cairo, Egypt due to travel restrictions brought about by Covid-19.
The fund was set up to implement the Bank’s equity investment programme by providing seed capital to companies in Afreximbank’s key focus sectors, including agri-business, manufacturing, consumer and retail, and financial services.
The Bank also supports businesses in technology, travel and tourism, transport and logistics, and industrial parks.
It will invest across all market segments but will have its greatest focus on small and medium-sized enterprises.
According to Afreximbank, the long-term objective is to provide equity capital and related support to operators in Africa’s tradable and support sectors, with emphasis on activities that support intra-African trade and value-added exports.
The Fund, which was set up with an initial $100-million commitment, will also seek to leverage on the role Afreximbank has played in mobilising trade finance into Africa to also mobilise foreign direct investment into the continent.
Source:The New Times