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The African Export-Import Bank (Afreximbank) has set up a new trade finance facilitation programme to mitigate the stringent compliance and regulatory requirements imposed by international banks on African banks for trade confirmation lines.

The trade facilitation programme, packaged in consultation with executives from 24 banks and a representation from the Export-Import Bank of Korea, is expected to transform African trade. According to a statement released on Tuesday, the programme has been structured to enhance confidence of counter-parties in the settlement of international trade transactions for intra and extra-Africa trade, and improve correspondent banking relationships.

The programme was unveiled by the Executive Vice President – Business Development and Corporate Banking, Amr Kamel, in Cairo, Egypt.

“The programme will enhance confidence among African banks and boost Egypt-Africa trade and intra-Africa trade, thereby decreasing the trade finance in the continent due to stringent regulations and high compliance costs,”Kamel said. He also added that Afreximbank has aided in confirming banks that had risk capital and capacity constraints to support trade finance transactions.

The participating banks include Abu Dhabi Islamic Bank; Ahli United Bank of Egypt; Al Ahli Bank of Kuwait; Alex Bank; Arab Bank; Arab International Bank; Arab Investment Bank; Attijariwafa Bank; Banque du Caire;  Banque Misr; Blom Bank; Commercial International Bank; and Credit Agricole of Egypt.

Others are Egyptian Gulf Bank; Emirates NBD; Export Development Bank of Egypt; First Abu Dhabi Bank; Mashreq Bank; National Bank of Egypt; QNB Al Ahli; Societe Arabe Internationale de Banque; Suez Canal Bank; the United Bank; and Union National Bank.