African Export-Import Bank (Afreximbank) has announced the signing of a loan agreement of EUR 250 million with the German Development Bank (KfW) which acted on behalf of the German Federal Ministry for Economic Cooperation and Development (BMZ).
The loan will support the Bank’s Covid-19 intervention programme, and specifically its financing for the production, acquisition and distribution of vaccines and medical supplies.
This loan, according to Afreximbank, demonstrates the support of the German Government for Afreximbank’s Covid-19 related interventions across Africa. It also affirms the commitment of the German Government to promote the manufacture of vaccines and other critical pharmaceuticals in Africa.
Afreximbank has demonstrated commitment and capability to support these activities across Africa which provides assurance that the loan will be wisely utilized and deliver on its purpose, the Bank assured in a statement.
As well as contributing to the advancement of Africa’s Covid-19 response, the loan supports the Bank’s strategic goal of accelerating Africa’s industrialization and expanding the continent’s manufacturing capacity – which will in turn drive economic growth and job creation.
Using the loan as a platform, Afreximbank plans to support the development of vaccines and pharmaceutical manufacturing capacities across Africa in a sustainable manner, which will help prepare Africa better for future pandemics and other public health challenges.
Developing the Pharmaceutical Capacity In Africa
Prof. Benedict Oramah, President of Afreximbank, underscored that the loan agreement is a validation of the Bank’s commitment to fighting the pandemic.
“Our relationship with the German Development Bank (KFW) and the Federal Ministry for Economic Cooperation and Development (BMZ) has been extremely productive over the years. We are delighted to have expanded and deepened it with this loan.
“Afreximbank has worked tirelessly to support member states as they work to collectively attain the African Union’s goal of vaccinating at least 70% of the continent’s population by the end of 2022. Today’s announcement serves as a validation of the Bank’s Covid-19 response strategy and its extension to develop pharmaceutical capacity in Africa”.
Prof. Benedict Oramah
Christiane Laibach, Member of the Executive Board at KfW Group, noted that production of vaccines in Africa will reduce the continent’s reliance on other institutions.
“The African continent has been hard hit by the consequences of the coronavirus pandemic. This is why it is important to reduce the impact on the health of the population and the economy. The development and strengthening of local production capacities for vaccines and medical products aims to promote the self-reliance of African countries in their response to the pandemic and reduce dependence on non-African products and international supply chains”.
Christiane Laibach
African Export-Import Bank (Afreximbank), a Pan-African multilateral financial institution mandated to finance and promote intra-and extra-African trade, deploys innovative structures to deliver financing solutions that support the transformation of the structure of Africa’s trade, accelerating industrialization and intra-regional trade, thereby boosting economic expansion in Africa.
The Bank has a rich history of intervening in support of African countries in times of crisis. Through the Pandemic Trade Impact Mitigation Facility (PATIMFA) launched in April 2020, Afreximbank has disbursed more than US$7.5 billion since 2020 to help member countries manage the adverse impact of financial, economic, and health shocks caused by the COVID-19 pandemic.
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