Afreximbank expands trade finance intermediaries to boost local economies
Accredited institutions in Nigeria are Access Bank Plc, First City Monument Bank Ltd, Fidelity Bank Plc, First Bank of Nigeria Ltd, Sterling Bank Plc, Union Bank of Nigeria Plc, Stanbic IBTC Bank and Zenith Bank Plc.
The African Export-Import Bank (Afreximbank) said on Tuesday that it has increased the number of its Trade Finance Intermediaries (TFIs) to more than 65 in 30 African countries in 2020. The TFIs are partner financial institutions through which Afreximbank delivers its initiatives and credit solutions across the continent.
"Afreximbank Trade Finance Intermediaries are playing a vital role in boosting local economies and trade across Africa," the bank said in a statement on Twitter. "We are transforming trade with continent-wide initiatives which are supported and delivered by our #TFIs."
The bank said it accredits financial institutions under its Trade Finance Intermediary initiative in line with its charter and mandate. Under this business model, central banks, commercial banks and other eligible bank and non-bank financial institutions can deliver Afreximbank’s products and services.
The TFIs also act as Local Administrative Agents for Afreximbank’s facilities. In 2020, the bank said it onboarded more than 35 additional TFIs and more are expected to be approved next year.
According to the bank's statement, there are eight accredited TFIs in Nigeria. The institutions are Access Bank Plc, First City Monument Bank Ltd, Fidelity Bank Plc, First Bank of Nigeria Ltd, Sterling Bank Plc, Union Bank of Nigeria Plc, Stanbic IBTC Bank and Zenith Bank Plc.
Accredited according to rigorous criteria, Afreximbank said TFIs are institutions that understand its mandate, strategy, process, and procedures. Following the introduction of new guidelines for appointing TFIs in 2017, Afreximbank said it has strengthened the role of partner financial institutions in assisting the bank to reach eligible exporters and importers in Africa and beyond.
The expanded network of TFIs are expected to help in facilitating the transformation and development of trade in Africa. Afreximbank said the TFIs will also be instrumental in ensuring the success of its key initiatives designed to help achieve the goals of the African Continental Free Trade Agreement (AfCFTA) set to go into operation on January 1, 2021.
Headquartered in Cairo, Egypt, the Pan-African multilateral financial institution said its total assets and guarantees stood at $20.28 billion and the value of its shareholders funds was $3.13 billion as of the end of September 2020.
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