Rwanda, Afreximbank and FEDA officials pose for a group photo with PM Ngirente (6th left) after the office launch
The Prime Minister Dr. Édouard Ngirente has officially launched offices of the Fund for Export Development in Africa (FEDA) in Kigali, as a subsidiary of the African Export-Import Bank (Afreximbank) that aims to boost inter-African trade through exports.
The ceremony held on Wednesday March 20, 2024, marks the first step of the implementation of the Host Country Agreement (HCA) signed in Cairo, Egypt in December 2021 between Rwanda and Afreximbank.
Ngirente, who presided over the colorful event, said that the establishment of the office confirms the strong partnership between Rwanda and Afreximbank.
Prime Minister Dr. Édouard Ngirente opening remarks at the FEDA office launch in Kigali
“Rwanda is pleased to host the Fund for Export Development in Africa (FEDA) and is committed to becoming a reliable partner towards fostering economic growth on the continent and promoting intra-African trade,” Ngirente said.
Even with the Africa Continental Free Trade Agreement (AfCFTA) potential to boost intra-trade, currently, intra-African trade exports account for around 17% of total exports.
PM Ngirente said that this share is low compared to other continents, yet this reality leaves a very big untapped potential within the continent’s own backyard, especially due to obstacles such as: low trade complementarity due to low economic diversification and limited productive capacities as well as lack of adequate infrastructure.
PM Ngirente (3rd left) officially unveiling the FEDA offices in Kigali
The Prime Minister, however commended FEDA for coming in to change this narrative and used the opportunity to call on FEDA to invest in Rwandan projects, support in up-skilling Rwandans in the financial services sector, and contribute to positioning Rwanda as a financial hub in Africa.
“Together, let us seize this opportunity to unlock Africa’s potential and chart a course towards a stronger future for all,” Ngirente said.
FEDA was established to tackle Africa’s $110 billion financing gap for intra-African trade, value-added export development, and industrialisation value chains.
Rwandan traditional dance troupe entertains guests at the launch event held in Kigali at Radisson Blu Hotel and Kigali Convention Centre
The President of Afreximbank, Prof. Benedict Oramah noted that FEDA adds to the pool of institutions helping Africa to create its own capital base for development.
“With a focus on providing long-term, patient capital targeting all segments, from SMEs to corporates, and cutting across dynamic sectors of value-addition, services, and technology, FEDA is poised to drive Africa’s development under a new vision of de-commoditised, growth-oriented pathways underpinned by a dynamic private sector,” Oramah said.
Prof. Oramah explained that four years after FEDA began operations, the Funds Under Management in different strategies amount to about $800 million and FEDA is using some of these funds to create and mobilise additional funds.
FEDA is also a co-promoter of a $500 million Africa Credit Opportunity Fund (ACOF) and is currently creating a $100 million Venture Capital Fund to focus on start-ups and SMEs with seed funding from Afreximbank.
