African Export–Import Bank announces major financing for Guyana, other CARICOM member-nations

Last Updated on Monday, 30 October 2023, 16:49 by Denis Chabrol

President and Chairman of African Export–Import Bank (AFREXIMBANK), Professor Benedict Oramah

The Egypt-headquartered African Export–Import Bank (AFREXIMBANK) would be offering US$500 million to Guyana to fast-track the development of infrastructure in this South American nation and double the lending limit to US$3 billion for all Caribbean Community (CARICOM) member-nations.

President and Chairman of African Export–Import Bank (AFREXIMBANK), Professor Benedict Oramah told the opening of the African-Caribbean Trade and Investment Forum (ACTIF) here that the the money to Guyana would be used by government to “support accelerated infrastructural development projects of the Guyanese government.” He described the facility as “bridge financing.”

He added that the Fund for Export Development in Africa and Access Bank Group Nigeria would jointly invest in the financial services sector in Guyana and the rest of the Caribbean.

Prof Oramah also said Barbados would receive funding to revitalise its tourism sector; climate adaptation interventions in St Lucia; Small and Medium Enterprise support and development in The Bahamas; tourism projects in Grenada, and renewable energy projects and trade finance in St Kitts and Nevis.

The AFREXIMBANK official also announced that that financial institution would increase its lending limit to CARICOM countries from US$1.5 billion to US$3 billion when more countries of the region ratify the partnership treaty. Twelve of CARICOM’s 15 countries have inked the treaty and eight have ratified it.

As a result of five trade missions to signatory CARICOM member-nations in recent months, the AFREXIMBANK President said there were now more than US$2 million in pipeline deals.

The Caribbean Development Fund is now a shareholder in AFREXIMBANK and, according to Prof Oramah, his financial institution plans to become a shareholder of up to 49 percent in a planned CARICOM EXIMBANK “if invited to”.

Also on the cards are the joint establishment of a US$200 million renewable energy facility with Eastern Caribbean states and a special tourism revamp facility in which AFREXIMBANK would invest up to US$300 million with regional and national agencies with an emphasis on “local content”.

“Interest rates are high and is making things difficult for many to access funding in the Caribbean and, of course, Africa. AFREXIMBANK understands this problem and is doing its utmost to help,” he said.

The bank is likely to extend a US$1 billion concessional finance window, which was approved by its board in June, 2023, to CARICOM and eventually non-CARICOM Caribbean territories.

He said an African Trade Centre would be established in Barbados, the home of the bank’s Caribbean office, before the end of 2024. He said the centre would host the permanent Caribbean office as well as a hotel, technology and innovation centre,trade information centre, and conferencing and distribution facilities.