NASSAU, BAHAMAS — The government yesterday signed an “historic” Memorandum of Understanding (MoU) with the Africa Export-Import Bank which is seeking to expand its operation to Caribbean member states.
Prime Minister Philip Davis noted that under the agreement, The Bahamas joins other Caribbean states in establishing a partnership between countries in the region and the African Export-Import Bank.
Davis said: “In keeping with its mission, Afreximbank seeks to expand its operation to Caribbean member states through the establishment of the Caribbean Exim Bank which will provide services to the region such as Trade and Project Financing, Export Development, guarantees and trade information, and advisory services.
“This partnership holds much promise. It provides for the promotion and financing of ‘South-South trade’ between African countries and Caribbean member states. Provision is also made for financing exports and imports of non-traditional African goods and services, the provision of insurance, and guaranteed service coverage for commercial and non-commercial risks associated with African exports and imports.
“Member states will also support the Bank in acting as an intermediary between African traders and traders of the Caribbean Community, and to facilitate and support the execution of banking operations and the borrowing of funds,” said Davis.
He noted that the Afrexim Bank has also indicated that once the regional office has been established that it envisaged committing an investment of US$700 million in the Caribbean.
Ayman El Zoghby, Head of Trade and Corporate Finance at the Afrexim Bank also described the MoU signing as a “historic milestone,” which will unlock activities such as financing programs and other initiatives in The Caribbean
El Zoghby noted that the bank is already working on the establishment of representation in the Caribbean which will eventually evolve into an Exim bank that will support trade and investment in the Caribbean.
He added: “We have already started the Africa Caribbean Trade and Investment promotion program that we are immediately launching for $250 million which we are immediacy launching for financing and investments.”
El Zoghby said that the bank has identified strategic opportunities in transportation space, poultry farming, renewable energy given the high cost of electricity, and supporting local banks with correspondent lines of credit for strategic importation from across the world.
