Afreximbank set aside $310m for small businesses in Africa

Given its potential and contributions to the continent’s economy, agribusiness in Africa has the backing of the Africa Export-Import Bank, according to Mrs. Oluranti Doherty, Managing Director of Export Development.

According to Doherty, the bank intends to increase its assistance for SME growth in Africa to $310 million before the end of the year, from the original $148 million provided to its partner banks.

She said the growing population of Africans in the diaspora of recent has also led to increased demands in African agricultural processed products which many believe are better than the ones from the West, saying that the export of African agricultural products has continued to be a very lucrative business

Doherty disclosed this on Monday while speaking during the opening ceremony of the second edition of the SME Agribusiness Export-Readiness Accelerator Training held in conjunction with Africa Leadership Foundation.

The four-day training which was held at the Green Legacy Resort of Olusegun Obasanjo Presidential Library, Abeokuta, Ogun State capital attracted 100 participants drawn from 13 West African countries including Togo, Benin Republic, Burkina Faso, and Sierra Leone among others.

She said, “We believe that for us to change the African continent for good, we have to focus on agro-business, it is a strategic sector. It is the centre of strong potential for the development of SMEs to harvest export value chain

“Today the agricultural sector accounts for 25 per cent GDP contributions to the African economy and it is responsible for about 60 per cent workforce, especially in the rural areas. In recent years, there has also been increased demand for processed agricultural products from Africa because of the growing population of Africans in the diaspora.

“And as a way of supporting SMEs export development in Africa, we have provided $148m to our financial intermediaries, that is, our partnering banks for disbursement to the SMEs and we intend to scale this financing to $310m before the end of this year.”

Doherty said that Afreximbank is making this financial intervention to ensure that the SMEs have funds to pursue their agricultural export business.

She said Afreximbank has equally trained over 2500 business operators in Africa and supported over 300 to access the free market among others.

Doherty also urged the SME operators to digitise their business as this will help them to connect to the outside world and increase their visibility.

Speaking at the programme, the Executive Director of Africa Leadership Foundation, Dr Olumide Ajayi called for more support for Small Medium Enterprises, describing them as very crucial to the prosperity and development of the African continent.

Ajayi described the training as another crucial milestone in ALF’s unwavering commitment and partnership with Afreximbank to fostering sustainable economic growth and empowering African businesses

He said the collaboration is driven by a shared vision to enhance the capabilities of SMEs across Africa, ensuring they are equipped to seize the abundant opportunities within the intra-African market.

Ajayi hailed Afreximbank’s commitment to African trade development saying that it has been instrumental in fostering economic growth across the continent.

He said, “Through Afreximbank’s innovative financing solutions and strategic initiatives, the bank has consistently demonstrated its dedication to empowering African businesses and facilitating trade.”This partnership is a testament to our shared vision of building a prosperous Africa through robust trade networks and economic cooperation.

“Without a doubt, SMEs are crucial to Africa’s economic development, serving as the backbone of many economies by driving job creation, innovation, and wealth generation.

“I strongly encourage all participants to actively engage in the various sessions of this training–ask questions, network, and build connections.”

Ajayi said that as a way of ensuring broader regional inclusion and getting more participants on board the annual training, ALF is already proposing a 5-year expansion of the export readiness training programme.

He said it is for this reason that ALF and the Federation of West African Chambers of Commerce will be signing an MoU during the event to extend this training to their members.

There were goodwill messages from Mme Benita Diop, AU Special Envoy on Women, Peace and Security as well as Ambassador Aminou Akadiri, Executive Director, Federation of West African Chambers of Commerce and Industries.

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