The Fund for Export-Development in Africa (FEDA), an African Export-Import Bank (Afreximbank) subsidiary focused on development impact, has accepted Zimbabwe as its sixth signatory to the Establishment Agreement.
His Excellency Dr. Emmerson Dambudzo Mnangagwa, President of the Republic of Zimbabwe, recently signed the Agreement.
This is an important step forward in Afreximbank’s efforts to mobilize its Member States to sign and ratify the FEDA Establishment Agreement. It also shows the growing popularity of FEDA as a new multilateral development platform.
Following the announcement of its first close of US$ 670 million in September 2022, FEDA is gaining traction for strategic interventions on the Continent.
“The Republic of Zimbabwe’s accession to the FEDA Establishment Agreement is an important step that will pave the way for the Agreement’s ratification in the coming months, thereby facilitating increased investment by FEDA in Zimbabwe,” said Professor Benedict Oramah, President and Board Chairman of the Board of Directors of Afreximbank and FEDA. The mandate of FEDA is critical to African economies because it provides long-term capital with an emphasis on industrialization, intra-African trade, and value-added exports. We look forward to mobilizing other Afreximbank Member States to support FEDA’s pan-African expansion in due course.”
“This promising development builds on FEDA’s track record of investing in companies operating in Zimbabwe that are strategically aligned in promoting industrialization, intra-African trade, and value-added exports,” said Marlène Ngoyi, CEO of FEDA. One of the investments is in the TMT sector, which provides critical digital infrastructure to support Africa’s connectivity and trade with the rest of the world. FEDA has stated its intention to intervene further in the country in the near future.”
The Fund for Export Development in Africa (“FEDA”), headquartered in Kigali, Rwanda, is Afreximbank’s impact investment subsidiary, established to provide equity, quasi-equity, and debt capital to finance the multi-billion-dollar funding gap (particularly in equity) required to transform Africa’s trade sector.
FEDA pursues a multi-sector investment strategy that includes financial services, technology, consumer and retail goods, manufacturing, transport and logistics, agribusiness, and ancillary trade enabling infrastructure such as industrial parks.