Catalysing Africa’s Future Through Innovation: Prof. Benedict Oramah, President and Chairman of Afreximbank, on Driving Industrialisation and Transforming Trade Finance  

In an insightful conversation with Prof. Benedict Oramah, President of Afreximbank, we explore the Bank’s pivotal role in driving Africa’s trade transformation. From championing the African Continental Free Trade Agreement (AfCFTA) to innovating with the Pan-African Payment and Settlement System (PAPSS), Prof. Oramah delves into how Afreximbank is empowering African economies, enhancing trade finance, and positioning the continent as a formidable global player. 

Africa Collective: Can you briefly introduce yourself and your organisation? 

I am Professor Benedict Okey Oramah, President and Chairman of the Board of Directors of African Export-Import Bank (Afreximbank), a role I have had the privilege of holding since 2015. Since its inception in 1993, when I joined, Afreximbank has evolved into a global institution that is systemically important to Africa. Over a relatively short period of existence, the Bank has deployed impactful interventions that are driving and transforming Africa’s trade and economic development.  

Afreximbank is an African multilateral financial institution mandated to finance, facilitate, and promote intra- and extra-African trade. Over three decades, the Bank has deployed innovative instruments to support the transformation of Africa’s trade structure, accelerating industrialisation, intra-regional trade, and economic expansion. We are proud to be playing a pivotal role in the implementation of the African Continental Free Trade Agreement (AfCFTA), particularly through initiatives, such as the Pan-African Payment and Settlement System (PAPSS), the implementation of innovative African trade as investment finance facilities and the establishment of an AfCFTA Adjustment Fund to assist countries in effectively participating in the Free Trade Area. 

As of September 2024, Afreximbank’s total assets and guarantees surpassed USD 36 billion, underpinned by shareholders funds amounting to about USD6.5 billion, reflecting the Bank’s robust financial standing and its ability to support Africa’s trade and industrial development. Our strong performance is underpinned by our strategic focus on trade finance, regional integration, and innovation. The Bank’s financials continue to demonstrate healthy growth in loans and advances, trade-related financing, and operational efficiency. 

Afreximbank’s strong credit ratings also reflect the confidence of international financial markets in its capacity to execute its mandate. The Bank has maintained investment-grade ratings from major rating agencies, with a Baa1 rating from Moody’s, BBB rating from Fitch and A- rating from JCR, demonstrating our strong financial stability and continued growth prospects. 

These achievements not only affirm Afreximbank’s pivotal role in Africa’s economic transformation but also position it as a trusted partner in driving the continent’s development agenda. 

 Africa Collective: What is your organisation’s primary focus or mission? 

Afreximbank’s primary mandate is to facilitate, promote and finance intra- and extra-African trade. We are committed to driving Africa’s economic transformation by addressing the barriers to trade and enhancing the continent’s capacity to participate effectively in global trade. Afreximbank’s mission is to stimulate a consistent expansion, diversification and development of African trade, while operating as a first-class, profit-oriented, socially responsible financial institution and a centre of excellence in African trade matters. 

Under our current five-year strategic plan, Plan VI (2022–2026), we focus on five key strategic pillars: 

1. Intra-African Trade: Expanding trade within Africa to support the implementation of the African Continental Free Trade Agreement (AfCFTA) as well as trade and investment flows within the broader Global Africa community. As of date, 12 Caribbean community states have become treaty partners of Afreximbank and able to receive financial support. 

2. Industrialisation and Export Development: Supporting industrial growth and value addition in Africa to enhance the continent’s global trade competitiveness. 

3. Trade Finance Leadership: Providing innovative trade finance solutions that address the trade finance gap in African trade. 

4. Financial Sustainability: Strengthening the Bank’s financial performance to ensure long-term sustainability. 

Through these strategic focus areas, we aim to empower African economies to achieve structural transformation, inclusive growth, and resilience in the face of global challenges. Our efforts are guided by the vision of an integrated and prosperous Global Africa, underpinned by strong intra-African and global trade relationships. 

Africa Collective: How do you see your organisation as a pan-African champion? 

Afreximbank embodies Pan-Africanism in action, a globally and continentally significant institution that has become a principal driver of economic transformation and a vital instrument for implementing the African Continental Free Trade Agreement (AfCFTA) and in re-integrating Africans in the Diaspora with the motherland through trade investments and cultural interactions. From deploying the Pan-African Payment and Settlement System (PAPSS), a revolutionary financial market infrastructure that enables instant cross-border payments in local currencies, to spearheading the implementation of the AfCFTA, a historic catalyst for Africa’s economic transformation, we create systems that make Africa stronger and more interconnected. We finance critical infrastructure and industrial projects, empower SMEs, and ensure that trade becomes a vehicle for wealth creation across borders. Our ability to provide solutions that are African in design, yet globally competitive, underscores our role as a champion for the continent’s integration and transformation. 

Our shareholding is inherently pan-African, giving us Pan-Africanism in our DNA. This foundational principle guides our operations, and we design our interventions with the whole of Africa, including the Africa Diaspora in mind. In everything we do, we defend Africa’s interests, reflecting our deep commitment to the continent and to all African people, wherever they may be. 

This commitment is evident in several key initiatives: 

1. Support for the AfCFTA: 

• Launch of the Pan-African Payment and Settlement System (PAPSS) to facilitate and ease intra-African payments, trade and investments. 

• Establishment of the USD 10 billion AfCFTA Adjustment Fund to help countries participate effectively in the AfCFTA. 

• Support for the biennial Intra-African Trade Fairs which attract over 30,000 visitors and billions of U.S. dollars in deals. 

• Development of trade finance programs tailored to boost regional trade and integration. 

• Introduction of Africa Collaborative Transit Guarantee Scheme to enable a seamless movement of goods across multiple borders 

• Support for harmonisation of standards of tradable products for an effective AfCFTA implementation among others. 

2. Support for the African Union Commission (AUC): 

• Providing grants and technical assistance to advance the AU’s priorities. 

• Our designation as the AU’s Knowledge Partner in relation to Africa’s membership in the G20 is a testament to our strategic partnership and thought leadership. 

3. Vaccine Intervention: 

• During the COVID-19 pandemic, the Bank played a key role in helping Africa get access to up to 400 million doses of Johnson and Johnson COVID-19 vaccine by providing a USD2bn Advanced Procurement Commitment (APC) guarantee through the Africa Vaccine Acquisition Trust (AVAT). 

Through these initiatives and others, we continue to lead the way in shaping Africa’s narrative, fostering resilience, and empowering the continent to achieve its full potential. 

Africa Collective: Which topics and themes related to Africa would you like to see more prominently featured on global platforms such as the World Economic Forum?  

Africa’s rise should be a central theme on global platforms. This includes the narrative of Africa as the world’s fastest-growing consumer market, with the AfCFTA establishing one of the largest free trade areas globally, with a market of 1.4 billion people and a combined GDP of USD 3.4 trillion. This transformative initiative has the potential to significantly alter Africa’s trade and economic landscape. Africa’s role in driving global food security and its potential as a renewable energy hub should also not be underemphasised. 

Discussions on financing trade, industrial transformation across Africa, and leveraging the AfCFTA to reframe Africa’s position in global value chains are critical. It is also vital to highlight Africa’s solutions to global challenges, from its youthful talent pool to its innovation in digital and financial ecosystems. 

Additionally, we believe the global discourse should focus on: 

1. Support for AfCFTA Implementation: 

• The global community must play an active role in supporting the implementation of the AfCFTA, which is a key driver of regional integration and economic growth. This includes facilitating technical and financial assistance including investing in the AfCFTA Adjustment Fund to ensure its success. 

2. Industrialisation Initiatives for Africa: 

• With its abundant youthful talent, a discussion on growing Africa into a manufacturing hub of the world will be of significant benefit. Promoting industrialisation not only supports economic development but also addresses pressing global challenges. By creating jobs and reducing unemployment, industrialisation can mitigate migration issues while contributing to global carbon emissions reduction through sustainable and green production methods. 

3. Addressing Africa’s Risk Perception: 

• There is an urgent need to confront the often-unfounded negative risk perception of Africa. This perception discourages investments and financing, limiting the continent’s economic potential. Changing this narrative on global platforms can help unlock Africa’s ability to attract investments and achieve equitable growth. 

4. Highlighting the Role of African Multilateral Financial Institutions as an important element of Africa’s financial architecture. 

Africa Collective: Can you share an example of a successful partnership you have been part of in Africa? 

One standout example of a successful partnership is our role in helping Africa secure access to vaccines during the Covid-19 pandemic. This initiative, which was established under the leadership of H.E. President Cyril Ramaphosa, Chair of the African Union at the time, brought together the African Union (AU), the AU Special Envoys on the COVID 19 supplies, Mr Strive Masiyiwa, the African Centres for Disease Control and Prevention (Africa CDC), the United Nations Economic Commission for Africa (UNECA), Mastercard Foundation, MTN Group, the World Bank, and other partners. 

Afreximbank led the structuring of an innovative financing arrangement that facilitated the first-over continent-wide pooled procurement mechanism. Afreximbank also provided a financial guarantee of USD 2 billion to support the procurement of COVID-19 vaccines on behalf of African Union Member States. This financing enabled the continent to secure access to 400 million doses of the Johnson & Johnson single-shot COVID-19 vaccine. The partnership ensured timely access to vaccines for Africa, circumventing global supply chain challenges and helping to address the critical gap in vaccine equity during the pandemic. 

The impact of this initiative was profound. It represented the first time the continent deployed pooled procurement at such a scale ensuring that all countries, irrespective of size, had access to vaccines at the same price. It also represented a coordinated African response to a global crisis, showcasing the continent’s ability to leverage partnerships, mobilise resources, and implement effective solutions at scale. By securing vaccines for millions of Africans, AVAT safeguarded public health and bolstered confidence in the continent’s capacity to address its challenges and assert itself in global negotiations. 

This partnership exemplifies the transformative potential of collaboration in solving Africa’s most pressing challenges and underscores Afreximbank’s commitment to being a reliable partner in driving innovative solutions for the continent. 

Africa Collective: What key message would you like to share about Africa’s potential and opportunities with the global community? 

Africa is not just the future; it is the present. The African Continental Free Trade Agreement (AfCFTA), which creates a USD3.4 trillion economic bloc encompassing 1.4 billion people, is a game-changer for the global trade landscape. Africa offers unparalleled opportunities in trade, manufacturing, technology, green energy, and much more. With a youthful, dynamic population and vast untapped markets, the continent has the potential to drive not only its own prosperity but also global economic growth. 

To the global community, my message is clear: Africa is ready. The continent stands prepared for equitable partnerships that foster shared value, mutual respect, and a reimagining of global trade and investment. What Africa seeks is not charity but collaboration—partnerships built on fair trade practices, investment in infrastructure, and the transfer of technology and skills; a partnership that recognises that we must gain a fair share of the value of the of the resources under our soil 

The AfCFTA represents more than a trade agreement; it is a platform for industrialisation, economic diversification, inclusiveness and global competitiveness. By eliminating trade barriers, harmonising regulations, and fostering cross-border collaboration, it will unlock Africa’s full potential and transform it into a hub of global value chains. But for this to happen, the global community must step up, and support the implementation of the AfCFTA with technical assistance, financing, and open access to markets. The global financial institutions must come to terms with, and support African financial institutions, who have become a critical part of Africa’s financial architecture.  

Beyond trade, Africa is a solution to some of the world’s pressing challenges. Industrialisation in Africa can address global concerns over supply chain diversification while creating jobs that mitigate migration pressures. Investments in Africa’s green energy potential, such as solar, wind, and hydro, can significantly contribute to global efforts to combat climate change while ensuring the continent’s energy security. Africa’s rich resources of battery minerals will be a key driver of the green transition the world is committed to. 

However, one of the greatest barriers to unlocking Africa’s potential remains the perception of its risk. Outdated narratives about instability and underdevelopment have discouraged investments, costing the continent billions in unrealised opportunities thereby constituting. self-fulfilling prophesies. It is imperative to change this narrative and acknowledge the progress Africa has made—building robust institutions, adopting digital technologies, and fostering economic reforms that create a conducive environment for business. 

We need increased trade and investment, which will ensure that Africa’s goods and services become more competitive in the global markets. Increased market access will lead to higher export volumes and revenues for African businesses, providing a much-needed boost to economies across the continent. 

For those investors seeking reliable partners, Afreximbank has a range of products and services that will not only facilitate your investment into the continent but also protect your investment as may be necessary. The Bank presents a trade and project finance supermarket where in one shop, you can access a diverse range of products from project preparation facility, through trade and project finance, equity investment, insurance services, payment services, Digital Services, trade information and advisory services, among others. We invite you to visit us www.afreximbank.com for a new world of engagement with Africa. 

About the Road to Davos – Leadership Voices Series 

Leading up to Africa Collective’s Davos annual series of events during the period of the World Economic Forum in Switzerland, taking place from 20-24 January 2025, Africa Collective is speaking to a collection of foremost thought and business leaders in both the private and public sectors as part of our ongoing effort to highlight opportunities in Africa. Our objective with the Road to Davos – Leadership Voices Series is to position African topics on the global stage through the lens of leaders from the continent or who lead organisations with interests in the continent.