Nigeria has formally endorsed the Establishment Agreement for the Fund for Export Development in Africa (FEDA), a significant move towards bolstering investment prospects across the continent. Managed by the African Export-Import Bank (Afreximbank), FEDA aims to fuel economic growth by providing essential financial support to Africa’s trade sector.
Nigeria’s accession marks it as the 16th nation to join the Agreement, highlighting the growing interest from African countries in utilizing FEDA’s impact investment platform. This development underscores Nigeria’s dedication to enhancing economic resilience and fostering regional cooperation.
The decision to endorse the FEDA Establishment Agreement follows Afreximbank’s three-decade-long presence in Nigeria, showcasing the country’s enduring commitment to advancing the bank’s goals and promoting sustainable development initiatives.
FEDA, Afreximbank’s impact investment arm, aims to address the significant funding gap in Africa’s trade sector, particularly in equity financing, crucial for driving transformative growth. By offering equity, quasi-equity, and debt capital, FEDA seeks to spur innovation and positive change in key industries, with investments reaching billions of dollars.
The ratification of the FEDA Establishment Agreement is expected to accelerate the implementation of its initiatives, empowering FEDA to play a more substantial role in Nigeria’s economic development and fostering cross-border trade partnerships across the continent.
Kenneth Oramah, President and Chairman of the Board of Afreximbank and FEDA, expressed gratitude to the Federal Republic of Nigeria for its commitment to the Agreement. He highlighted the strategic importance of the partnership between Afreximbank and Nigeria, emphasizing Nigeria’s crucial support for the bank’s endeavors. Oramah emphasized the potential of this collaboration to drive investments in critical sectors essential for Nigeria’s development journey.
Apart from Nigeria, other countries that have endorsed the FEDA Establishment Agreement include Rwanda, Mauritania, Guinea, Togo, South Sudan, Zimbabwe, Kenya, Chad, the Republic of the Congo, Gabon, Sierra Leone, São Tomé and Príncipe, Equatorial Guinea, Ghana, and Egypt. This joint effort reflects a shared commitment to fostering economic prosperity and regional integration across Africa.