By Tochukwu Bliss, Abuja
Libya has officially acceded to the African Export-Import Bank (Afreximbank) Establishment Agreement, thereby becoming the 53rd nation to become a member/participating state.
The development is said to mark an important step towards full continental coverage and advancement of the continental integration agenda through trade and investments.
A statement from Afreximbank, said the accession document, signed by the Minister of Finance, Dr. Khaled Abdullah, “sets the stage for the Libyan government and Afreximbank to cooperate on key development projects in Libya.”
Specific focus will be “on trade facilitation, infrastructure development and financial support to the North African nation.”
It also listed some of the projects identified for cooperation to include the financing of the development of the Misurata Free Zone, and construction of a road connecting Libya, Chad and the Republic of Niger, and expected to significantly boost Intra-African trade.
It added that “Afreximbank will also provide technical and financial assistance to the Sahel-Saharan Bank for Investment and Trade (BSIC) to expand its operations within East Africa.”
It will also “provide technical training and support to Libyan exporters to benefit from trade finance structuring and access to African markets.”
The statement also explained that “Joining the Bank’s membership paves the way for the ratification of the Establishment Agreement to complete the accession procedures.”
This partnership will not only provide vital financial and technical support to Libya but will also enhance the country’s role in intra-African trade.
Mr. Abdullah, who welcomed this partnership and its importance in supporting reconstruction and economic diversification efforts in his country, was quoted as saying that the nation’s accession to Afreximbank is a milestone in its journey towards rebuilding its economy and re-establishing its role as a regional trading hub.
“This partnership will not only provide vital financial and technical support to Libya but will also enhance the country’s role in intra-African trade,” he explained.
President and Chairman, Board of Directors at Afreximbank, Prof. Benedict Oramah, expressed his deep satisfaction with Libya’s decision to join the Bank’s membership.
Stressing the mutual benefits that both parties would mine from the agreement, he continued:
“Libya’s historical connections with the rest of the continent positions it as a crucial player in advancing continental trade and economic integration.
“This is a significant milestone that will extend the Bank’s reach, strengthen its relevance across Africa and beyond and help us achieve our ultimate goal of improving the trade and economic conditions for all Africans.
“By joining, Libya’s Public and Private Sector entities will gain access to our extensive range of funded and unfunded products and services, particularly those geared towards deepening Libya-Africa trade and investment relations, investing in trade-enabling infrastructure as well as transforming the structure of the Libyan economy.”
Libya’s GDP stood at $50.49 billion in 2023, ranking it as the 12th largest economy in Africa, an opportunity that could be leveraged upon, considering that less than 10% of its trade is with other African countries.
The signing of the Afreximbank Establishment Agreement represents a unique opportunity for Libya to increase its trade with other African countries.
