KIGALI, March 24 — Rwanda and the Africa Export-Import Bank (Afreximbank) on Wednesday formally inaugurated the headquarters of the operations of the Fund for Export Development in Africa (FEDA) in Kigali, the Rwandan capital, in hopes of boosting intra-African trade and promoting export development and manufacturing across the continent. FEDA, the development impact investment platform of Afreximbank, is mandated to implement the Bank’s equity investments across Africa by providing developmental equity and quasi-equity capital to companies involved in intra-African trade and export development/manufacturing on the continent. “The establishment of FEDA headquarters in Rwanda confirms the strong partnership between the government of Rwanda and Afreximbank,” said Rwandan Prime Minister Edouard Ngirente while addressing the event in the capital Kigali. He said that Rwanda is pleased the fund for FEDA is committed to becoming a reliable partner toward fostering economic growth on the continent and promoting intra-African trade. Ngirente highlighted some of the obstacles to the effective implementation of intra-African trade including low trade complementarity, low economic diversification and limited productive capacities as well as lack of adequate infrastructure. “I commend the FEDA’s effort in changing this narrative by providing vital financial and technical assistance on activities that would promote and facilitate intra-African trade. This will not only empower businesses to thrive and create jobs but also to drive sustainable economic progress for our people,” he said.
Speaking at the ceremony, Benedict Oramah, president and chairman of the Board of Directors at Afreximbank, said that FEDA is positioned to drive Africa’s development under a new vision of commodities growth-oriented parties underpinned by a dynamic private sector. According to him, FEDA will focus on providing long-term pension capital targeting all segments from small and medium enterprises to companies and cutting across dynamic sectors of value addition, services and technology. “We have formally launched one of the vehicles that will drive the continent towards the realization of the AfCFTA aspiration. The event celebrates the remarkable progress we have already made in creating and nurturing an institution we believe will be one of the most consequential for Africa in the years ahead, even more consequential than the Afreximbank,” Oramah emphasized. Francis Gatare, the chief executive officer of the Rwanda Development Board (RDB), said at the same event that FEDA is aligned with Rwanda’s objectives and those of other countries to address constraints hindering the advancement of intra-African trade and export growth. “While we continue to facilitate foreign direct investment in various sectors of our economy, FEDA will serve as a vehicle for facilitating Rwanda’s businesses’ entry into the broader African market, thereby enhancing economic integration on our continent,” he added. FEDA is poised to play a pivotal role in addressing Africa’s 110 billion U.S. dollars financing shortfall in equity financing for intra-African trade, value-added export development and industrialization value chains, according to Afreximbank. Key sectors FEDA will focus on include agri-business, manufacturing, consumer and retail, financial services, technology, travel and tourism, transport and logistics, and industrial parks.
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