The African Export-Import Bank (Afreximbank) has planned to commit a $200 million envelope to support the Fund for Export Development in Africa (FEDA) to be headquartered in Rwanda.
This was recently disclosed and confirmed during an exclusive interview with the New Times by Louise Kanyonga, the Chief Strategy, and Compliance at the Rwanda Development Board (RDB).
According to Louise Kanyonga,
“It is expected to have an initial commitment of $200 million from the bank. Rwanda is hosting the permanent headquarters of the fund.
“The Fund has been set up to implement Afreximbank’s Equity Investment Programme. It provides seed capital to companies operating in Africa, emphasising activities that would promote and facilitate intra-African trade, trade-related infrastructure and value-added exports, both goods, and services.
“The fund will soon be fully operational. There have been delays occasioned by the Covid-19 pandemic and the sad and untimely passing of the FEDA CEO Dr. Philip Kamau-however, business operations have progressed.”
What you should know
- Fund for Export Development in Africa (FEDA) was established in 2019.
- FEDA is an equity investment fund and a subsidiary of Afreximbank that seeks to fund African businesses to promote intra-African trade and facilitate foreign direct investment flows into the continent’s trade and export sectors.
- This strategic move is the sequel to the successful launch of the African Continental Free Trade Area (AfCFTA) agreement.
According to Kanyonga, under the agreement, the Fund will, among others, benefit Rwandan and African businesses that fall within the priority areas for the fund.
“The Fund Management Company will determine business eligibility. More details will be made available once the fund becomes fully operational,” he said.
With the siting of the FEDA office in Rwanda as its headquarters, the country would soon turn into an international financial center, with Rwanda Finance Limited set up to take on the role.