African Export-Import Bank (Afreximbank) has signed a loan agreement of EUR 250 million with the German Development Bank (KfW), acting on behalf of the German Federal Ministry for Economic Cooperation and Development (BMZ). The loan will support the Bank’s Covid-19 intervention programme, and specifically its financing for the production, acquisition and distribution of vaccines and medical supplies.
This loan demonstrates the support of the German Government for Afreximbank’s Covid-19 related interventions across Africa. It also affirms the commitment of the German Government to promote the manufacture of vaccines and other critical pharmaceuticals in Africa. Afreximbank has demonstrated commitment and capability to support these activities across Africa which provides assurance that loan will be wisely utilized and deliver on its purpose.
As well as contributing to the advancement of Africa’s Covid-19 response, the loan supports the Bank’s strategic goal of accelerating Africa’s industrialization and expanding the continent’s manufacturing capacity – which will in turn drive economic growth and job creation. Using the loan as a platform, Afreximbank plans to support the development of vaccines and pharmaceutical manufacturing capacities across Africa in a sustainable manner, which will help prepare Africa better for future pandemics and other public health challenges.Commenting on the loan agreement, Prof Benedict Oramah, President of Afreximbank said “Our relationship with the German Development Bank and the Federal Ministry for Economic Cooperation and Development has been extremely productive over the years. We are delighted to have expanded and deepened it with this loan. Afreximbank has worked tirelessly to support member states as they work to collectively attain the African Union’s goal of vaccinating at least 70% of the continent’s population by the end of 2022. Today’s announcement serves as a validation of the Bank’s Covid-19 response strategy and its extension to develop pharmaceutical capacity in Africa.”
Explaining why KFW extended the loan to Afreximbank, Christiane Laibach, Member of the Executive Board at KfW Group said “The African continent has been hard hit by the consequences of the coronavirus pandemic. This is why it is important to reduce the impact on the health of the population and the economy. The development and strengthening of local production capacities for vaccines and medical products aims to promote the self-reliance of African countries in their response to the pandemic and reduce dependence on non-African products and international supply chains.”