Eight Nigerian banks are now part of the Afreximbank Trade Finance Intermediary Initiative. The banks include Access Bank Plc, FCMB, Fidelity Bank, FirstBank, Sterling Bank, Union bank , Stanbic IBTC Bank and Zenith Bank Plc.
During 2020, the African Export-Import Bank (Afreximbank) had increased the number of its Trade Finance Intermediaries (TFIs) to more than 65 in 30 African countries.
A key component of the Bank’s business model, the Trade Finance Intermediary initiative enables a smoother delivery of Afreximbank’s initiatives and credit solutions.
In line with its charter and mandate, Afreximbank delivers its products and services with and through central banks, commercial banks and other eligible bank and non-bank financial institutions.
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The Trade Finance Intermediaries also act as Local Administrative Agents for Afreximbank’s facilities. The Bank has put in place the Trade Finance Intermediary initiative to establish lasting relationships with these partner financial institutions.
New guidelines for appointing Trade Finance Intermediaries were introduced in 2017. As a result, Afreximbank has strengthened their role in assisting the Bank to reach eligible exporters and importers in Africa and beyond. Accredited according to rigorous criteria, Trade Finance Intermediaries are trained to understand Afreximbank’s mandate, strategy, process, and procedures.
The further expansion of Afreximbank’s Trade Finance Intermediary initiative enlarges the accredited network of financial institutions that can work alongside the Bank to facilitate the transformation and development of trade across Africa.
Already this year, Afreximbank has onboarded more than 35 additional Trade Finance Intermediaries and more are expected to be approved during 2021. The local presence and knowledge of Trade Finance Intermediaries ideally positions them to play an important role in delivering Afreximbank’s credit solutions.
Trade Finance Intermediaries are also instrumental in helping to ensure the success of Afreximbank’s initiatives such as the newly launched MANSA repository platform – which provides a centralised pan-African source for Due Diligence and Know-Your Customer data – and the Pan African Payment and Settlement System (PAPSS), which will enable intra-African trade and commerce payments to be made in African currencies in furtherance of the goals of the African Continental Free Trade Agreement (AfCFTA).
In order to identify its partner financial institutions, Afreximbank’s official Seal of Accreditation as a TFI is a badge of honour and a symbol of excellence acknowledging and empowering their contribution to continent-wide initiatives, commitment to the development of Africa and the delivery of credit solutions at the local level.
