African Export-Import Bank (Afreximbank), yesterday, announced that the Fund for Export Development in Africa (FEDA), its development impact-oriented subsidiary, entered into a Joint Venture arrangement with Gateway Partners, to co-establish the Africa Credit Opportunities Fund (ACOF).
Without disclosing the value of the Fund, this partnership, a first of its kind between an African Development Finance Institution and an alternative investment manager, is intended to broaden and strengthen Afreximbank’s support for the continent, by enhancing the Bank’s scope of intervention beyond its traditional trade finance products.
The Pan-African multilateral financial institution also said in a statement on its website that the ACOF is a unique platform that brings together the institutional expertise and relationships of Afreximbank and Gateway to provide much needed financing solutions to businesses across Africa.
“It will focus on the growing opportunity for structured credit instruments for high quality businesses across the continent. In this way, the fund will support Afreximbank’s developmental mandate, including, amongst others, the promotion of intra-African trade and the development of value-added exports in Africa.
“This will stimulate growth in intra-African trade, employment, manufacturing and value addition, foreign exchange earnings and tax revenues, the promotion of which is particularly important in the post-pandemic era,” the statement reads.
This fund, which we are supporting with a significant capital commitment, allows us to scale the Bank’s impact and offer new products and solutions to existing and new customers.
Under the terms, the ACOF will be managed by Gateway Partners, a leading emerging markets-focused alternative investment manager, with offices in Dubai and Singapore. “Gateway, whose partners have a collective 200 years’ experience in emerging markets, a deep understanding of African markets, and strong network of relationships in Africa, has demonstrated its ability and commitment to deliver superior results for the ACOF.”
Commenting on the Export Fund, President of Afreximbank, Prof. Benedict Oramah, said: “We are pleased to partner with Gateway to establish the ACOF. This fund, which we are supporting with a significant capital commitment, allows us to scale the Bank’s impact and offer new products and solutions to existing and new customers. We invite other partners, investors and development finance institutions, within and outside Africa, to participate in this attractive and needed initiative.
“We are very excited that our newly created initiative, FEDA, has enabled us to create new partnerships such as this one with Gateway. In addition to FEDA’s primary investment activities, this will further position FEDA as a leading player in the investment landscape across Africa.”
On his part: CEO/Co-Founder, Gateway, Viswanathan Shankar, said: “Gateway Partners is delighted to partner with FEDA in this transformational endeavour. The demand for credit across the Continent is set to surge, while the supply side remains constrained. ACOF will attempt to bridge this gap in a responsible, impactful and sustainable manner, while boosting trade and investment flows.”
