The President of Afreximbank and Chairman of the Board of the Fund for Export Development in Africa (FEDA), Professor Benedict Oramah has said that Nigeria is one of the 20 countries in the continent that will witness massive funding from FEDA.
Oramah said this on Wednesday at the launch and official opening of the Fund for Export Development in Africa (FEDA) office in Kigali, Rwanda.
FEDA is the impact investment subsidiary of Afreximbank set up in 2019 to provide equity, quasi-equity, and debt capital to finance the multi-billion-dollar funding gap needed to transform the trade sector in Africa.
The FEDA targets a multi-sector investment strategy along the intra-African trade, value-added export development, and manufacturing value chain.
Oramah noted in his keynote address how the funds under management which is about $800m have been used to reshape trade activities in the continent.
He said, “FEDA is using some of these funds to create and mobilise additional funds, and it’s currently a co-promoter of a $500m African Credit Opportunity Fund.
“With seed funding provided by Afreximbank, it’s also created a $100m venture capital fund to focus on startups and SMEs. In 2023, FEDA became the fund manager of the $1bn AfCFTA adjustment fund.”
According to the Afreximbank boss, FEDA has led to the emergence of industrial complexes across Africa.
He explained that the fund supported the emergence of special economic zones in countries like, the Gabon, Benin and Togo while other projects are funded in Rwanda, Zambia and Malawi.
Oramah said similar projects will be witnessed in Nigeria and other African countries before the end of 2024.
He said, “Similar investments are spreading and are expected to reach at least 20 countries. As I said earlier, including here in Rwanda, Malawi, Côte d’Ivoire, Nigeria, Kenya, Congo Democratic Republic, the Republic of Chad, Zambia, and elsewhere by year-end.”
“These industrial zones have changed the profiles of the countries, from commodity-exporting countries to expertise of value-added or manufactured goods, attracting multiple times the values gained from commodity exports, helping to achieve economic diversification, creating dynamic local economies with strong domestic supply chains, and above all, jobs and stable incomes for the people.”