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Afreximbank unveils $10bn Iran war response programme
African Export–Import Bank (Afreximbank) has initiated a multi-billion-dollar crisis package to insulate African and Caribbean economies from the Middle East conflict.
Cairo-headquartered Afreximbank’s Gulf crisis response programme will have a $10 billion credit line to sustain essential imports, including fuel, liquefied natural gas (LNG), food, fertiliser and pharmaceuticals, by providing short-term foreign exchange and liquidity to support vulnerable member states, it said in a statement on Tuesday.
The Iran conflict sent shockwaves through the global economy, with African and Caribbean economies bearing the brunt of the impact, the statement said.
Later on Tuesday President Donald Trump said the US agreed to suspend attacks on Iran for two weeks, subject to Tehran agreeing to the “complete, immediate and safe opening” of the Strait of Hormuz.
The crisis response initiative will help to empower African energy and minerals exporters to capitalise on higher prices and rerouted trade flows by ramping up production in strategic commodities through pre-export finance, working capital and inventory financing.
Additionally, the programme will provide short-term relief to African and Caribbean member states whose tourism and aviation industries have been adversely hit by the crisis.
“We understand how our economies work and the pain points associated with these transitory crises,” said George Elombi, president and chairman of Afreximbank.
He said the programme will support African countries in adjusting smoothly to the crisis and strengthening their resilience to future shocks.
Further reading:
- Hormuz toll booth would be ‘unacceptable’ to Gulf producers
- US Kharg strikes bring Iran war closer to energy lifelines
- The Gulf’s growth model faces its first true stress test
Previously, Afreximbank has rolled out initiatives to address the 2015/16 commodity shock, the 2020/2021 Covid-19 pandemic, and the Russian war with Ukraine.
Beyond financing, Afreximbank will lead a coordinated regional response, in partnership with other global associations, to support regional coordination on energy security, trade resilience and supply chain diversification.
The trade finance bank’s total assets and contingencies stood at over $40.1 billion as of December 2024, with shareholders’ funds of $7.2 billion.
Source: AGBI