Kenya will benefit from a US$3 billion African Export-Import Bank Country Programme (Afreximbank). This was disclosed during a meeting between Kenya’s President, His Excellency Dr William Ruto, and Afreximbank President and Chairman of the Board of Directors, Professor Benedict Okey Oramah.
Prof. Oramah stated during the meeting at State House Nairobi that the Bank was excited about the opportunity to roll out this package of loans as part of its efforts to assist Kenya as it navigates the current extraordinary global economic challenges.
“We had a really nice discussion with His Excellency President Ruto and agreed that we needed to reestablish Afreximbank’s relationship with Kenya,” Prof. Oramah stated. “President Ruto’s vision and sense of urgency were contagious, and we couldn’t help but back him.”
Dr. Ruto said the discussion was beneficial and would allow Kenya to interact more with one of Africa’s premier development finance institutions.
“This will allow us to broaden our engagement with Afreximbank in a variety of investment areas, including infrastructure, agriculture, commercial irrigation, housing, the creative industry, and the MSME ecosystem,” Dr. Ruto explained.
A technical team comprised of representatives from the Kenyan government and Afeximbank is anticipated to begin work on the structure of the assistance.
A technical team comprised of representatives from the Kenyan government and Afeximbank is anticipated to begin work on the structure of the assistance.
A large portion of the assistance will go toward establishing a Kenya Climate Change Adaptation Facility. Underpinning this, Afreximbank will provide US$ 800 million in finance for the construction of 100 dams in Kenya, doubling irrigated area while paying special attention to regions experiencing water shortages as a result of climate change.
“We are happy to be utilizing Kenya to launch the Afreximbank Climate Change Adaptation Facility,” Oramah added. “Under Afreximbank’s 6th Strategic Plan, we plan to disburse about US$5 billion in the five years to 2026.”
Kenya wants to quadruple the land area under irrigation from 670,000 acres to 1.4 million acres over the next three years under this strategy. This is intended to increase food production while decreasing the country’s dependency on rain-fed agriculture.
“We are eager to launch this new program with the Kenyan government and promote climate wise agriculture in the country.” Prof. Oramah noted, “Our Project Preparation and technical teams will work with the Kenya government team on this project to build a viable model and structure that would attract investors.”
Support for the establishment and operation of industrial parks in Kenya will also be included in the Country Program. This is aimed specifically at improving Kenya’s industrial and value-added sectors. As a result, it will significantly improve intra-African trade under the Africa Continental Free Trade Agreement (AfCFTA).
Afreximbank has also expanded its pan-African pooled procurement platform for commodities, ATEX, to Kenya. This is vital in assisting the East African nation’s economic strains following the COVID-19 outbreak, as well as the impact of the ongoing Ukraine conflict on global supply chains, which has resulted in shortages and high pricing of essential commodities.
“Afreximbank will establish a facility to ensure the timely and long-term supply of basic commodities such as gasoline, fertilizer, grains, and culinary oils.” Prof. Oramah added, “We also want to refocus supply networks toward intra-African procurement.” “For example, Africa produces more fertilizer than it consumes, and some of it is exported, while some African countries import it,” he continued.
Through its CANEX platform for the creative sector, the Bank will also assist youth empowerment. This would help young brilliant Africans who have typically been overlooked by the financial services sector due to traditional lending patterns. The center will support the government’s efforts to promote film and performance arts, music, fashion and textiles, and art and crafts. Many young Africans will gain from their creativity and intellectual capital as a result of this.
Prof. Oramah and Dr. Ruto also discussed the Pan-African Payment and Settlement System at the meeting (PAPSS). They agreed that PAPSS was vital in facilitating intra-continental trade through the use of local currencies. The two emphasized that the step will be critical in expanding intra-African trade, particularly among MSMEs, as planned under the AfCFTA charter.
