The African Export-Import Bank (Afreximbank) has signed a landmark agreement for a US$100-million trade finance facility with Rawbank, a leading commercial bank in the Democratic Republic of Congo (DRC). This significant deal aims to enhance trade flows into and out of the DRC, providing much-needed support for the country’s economic development.
This facility, the largest trade finance agreement ever extended by Afreximbank to a commercial bank in the DRC, is expected to alleviate pressure on the country’s balance of payments. The facility utilizes the trade finance instruments offered by the Afreximbank Trade Finance Facility (AFTRAF) programme. Beyond stabilizing the balance of payments, this agreement will open up new business opportunities for Rawbank and its clients, further bolstering the economic infrastructure of the DRC.
Strategic Partnership for Economic Growth
Speaking at the signing ceremony during the Afreximbank Annual Meetings (AAM2024), Haytham Elmaayergi, Executive Vice President of Global Trade Bank at Afreximbank, emphasized the strategic importance of this partnership. “We are very pleased to deploy this important facility in the DRC to support such a strategic partner as Rawbank,” he stated. “Our partnership with Rawbank will be further strengthened to support economic development in the DRC. Our synergies can only help to build the Africa we want by unleashing the full potential of intra-African and global trade for the benefit of our people.”
Mr. Elmaayergi also highlighted that the AFTRAF programme is structured to provide trade confirmation services, trade confirmation guarantees, and irrevocable reimbursement undertakings to clients. This structure is designed to counteract the trend of reducing or withdrawing trade lines from African banks by international banks, a common issue following de-risking processes.
A Milestone for Rawbank and the DRC
Didier Tilman, Vice-President of Business Development at Rawbank, also expressed his enthusiasm during the signing ceremony. “Today marks a significant milestone for Rawbank and for the Democratic Republic of Congo. This agreement with Afreximbank represents not only a substantial injection of capital into our trade finance capabilities but also a testament to the confidence placed in Rawbank as a key player in driving economic growth and facilitating trade in the region.”
This collaboration between Afreximbank and Rawbank is poised to create substantial economic benefits for the DRC. By enhancing trade finance capabilities and fostering stronger commercial ties, this agreement exemplifies the potential for strategic partnerships to drive sustainable economic growth and development across Africa.
