This article was written with support from Afreximbank
The African Export and Import Bank will hold its next annual meeting in Abuja from 25-28 June 2025. This should serve as a suitable coda for the term of Professor Benedict Orama, the bank's third president and chairman.
Oramah, who joined the bank as an analyst shortly after its founding in 1993, has grown into a multifaceted group that has led trade financial institutions since 2015 and plays an increasingly important role in the continental development agenda.
In a challenging environment characterized by geopolitical tensions, high borrowing costs, debt sustainability concerns and climate-related disruptions, Afreximbank maintained its strong performance streak, increasing its first quarter 2025 profit from $178.7 million last year. This strong profitability was supported by net interest income of $411.2 million, up 4.53% the previous year, despite a slight drop in overall interest income due to a low benchmark rate.
Total assets and contingencies also increased to $42.7 billion, an increase of 6.4% from the end of 2024. This led to a 58% increase in cash balance, reaching $7.4 billion, reflecting funding efforts and successful healthy loan repayments. Balance sheet assets increased by 4.85%, but conditional liabilities increased by 18% due to increased demand for banks' trade services.
Despite a slight decline in net loans and progress, the banks maintained strong asset quality despite a decline in $27.8 billion from $290 billion in December 2024 as a result of early sovereignty repayments. End of 2024.
Shareholders' stock rose 3.4%, reaching $7.5 billion against the backdrop of larger internal profit retention and new stock subscriptions, under the bank's general capital growth.
Banks are ready to expand their role on the continent, which has since become one of the most trusted underwriters of the continental ambitions that will boost industrialization, the addition of local values ​​and intracontinental trade. In response to the continent's long-standing equity funding gap and the need to induce investment in growing industries, the bank launched the African Export Development Fund (FEDA) in 2021, fulfilling its obligation to provide patient equity capital to companies with potential for growth and scale.
The fund focuses on supporting investments in manufacturing, logistics, agricultural processing, financial services, trade infrastructure, and technology platforms and digital services. As of the first quarter of this year, the bank deployed approximately $579 million through FEDA, of which $565.3 was invested in 2024, investing in a variety of ventures that are driving growth and job creation across the continent.
As one of the most vocal supporters of the African Continental Free Trade Area (AFCFTA), and a strategic implementation partner, Orama has made the bank one of the most enthusiastic supporters of the AFCFTA, gaining many aid instruments that are easing trade across many borders on the continent.
Banks' Pan-Africa Payment and Settlement System (PAPSS), deployed alongside the AFCFTA Secretariat, provides instant, real-time payments in local currency, addressing one of the key challenges faced by cross-border traders. Due to its growing presence on the continent, PAPSS is also deployed in the Caribbean, and is expected to further solidify the trade link between the two regions.
Additional support for AFCFTA came through the AFCFTA Adjustment Fund. It provides financial support to African countries to manage possible revenue losses as a result of the removal of tariffs. And it will increase competitiveness for private sector stakeholders. Additionally, bank transport guarantee schemes implemented in collaboration with local economic communities and customs authorities also promote the seamless movement of goods across borders by providing financial guarantees. This reduces delays and logistics costs, allowing African businesses, particularly small and medium-sized businesses (small and medium-sized businesses), to trade more efficiently in multiple jurisdictions. The banks also implement automotive strategies, supporting the development of viable automotive value chains across Africa. This includes supporting component manufacturing, assembly plants and supply chain development, laying the foundations of Africa and becoming a competitive player in the global automotive market.
The bank is still pursuing a mission and mandate to boost trade and has launched Afrexinsure, a wholly owned subsidiary that provides specialized insurance solutions tailored to trade and trade-related investments across Africa. Announced at the 2023 AGM in Accra, Ghana, Aflexinsha offers to cover unique risks related to trade and investment in Africa, benefiting from the parent company's deep understanding of the continent. Since its launch, Affexin has proven important in providing insurance for critical projects, such as promoting all-risk construction insurance at the Afrimank African Trade Centre in Harare, Zimbabwe.
Within the decisive tenure of Orama's tenure, it was an outreach to the Caribbean, leveraging historical and cultural links between the two regions to pursue common goals, pursue common prosperity, and was able to gather in the pandemic's successful vaccin purchase programme.
Afreximbank has since expanded its presence and participation in community areas in the Caribbean, opening an office in Barbados and approved a $1.5 billion funding facility open to bank members who have joined the bank's partnership agreement. This partnership will be featured once more when the bank holds the African Ribbean Trade and Investment Forum (ACTIF) in St. George, Grenada, on July 28-29, 2025. ACTIF 2025 expects to see attendance, including heads of state, government officials, private sector leaders and investors from the Caribbean.
With trade between the two regions, accounting for less than 1% of total exports, Actif's success welcomes both regions and adds additional filling to Afreximbank's ambitions to not only promote, fund and promote trade within Africa and non-Africans, but also to catalyze economic change in Africa and the Caribbean.
