Banque Misr announced an investment of $201.1 million in the African Export-Import Bank (Afreximbank), of which $80.5 million were paid in.
By this investment, Banque Misr has increased its stake in Afreximbank from 3.1% to 5.8%, thereby making it the largest non-sovereign shareholder of the pan-African multilateral trade finance institution.
Daily News Egypt reports that this equity investment is a positive and strategic response to the ongoing general capital increase by Afreximbank.
In July 2021, Afreximbank embarked on a $6.6billion general capital increase, of which $2.6billion were paid-in to enhance capacity to deal with transitory pandemic challenges confronting Africa while promoting medium-to-long term sustainable trade and economic development on the continent.
Specifically, the investment will equip the bank to continue to support the procurement of coronavirus vaccines for the continent, bolster post-pandemic recovery efforts for the economies of African nations, and drive the implementation of the African Continental Free Trade Agreement (AfCFTA).
Banque Misr’s paid-in subscription of $80.5million demonstrates its commitment to support Afreximbank to expand its capacity to deliver on its core mandate and diversify its range of services.
The investment will equip the bank to continue to support the procurement of coronavirus vaccines for the continent, bolster post-pandemic recovery efforts for the economies of African nations, and drive the implementation of the African Continental Free Trade Agreement (AfCFTA).
It is also a reflection of the strength of the partnership between Afreximbank and Banque Misr. Over the last few years, the cooperation has helped to improve access to financing among Egyptian SMEs and improve the country’s trade, particularly with the rest of Africa.
“In light of Banque Misr’s long lasting relationship with Afreximbank and its commitment to fully support the bank in its continuous efforts to develop and unleash the African continent’s growth potential, we are delighted to announce our subscription to this much needed capital increase.
“We aim to continue supporting the bank in its vital mandate of serving the African continent,” said Chairperson of Banque Misr, Mohamed Al-Etreby.
Also commenting, the President and Chairman, Board of Directors of Afreximbank, Benedict Oramah, said: “We are particularly grateful for Banque Misr’s support for the general capital increase, as it will significantly contribute to the bank’s capacity to drive ongoing COVID-19 recovery efforts, support the implementation of the AfCFTA, while continuing to strongly support Egypt’s trade with the rest of African nations as well as promote and finance intra-African trade and export development.
“With this investment, Banque Misr has further strengthened its relationship with the bank, resulting in greater collaboration at the strategic and business levels.”
