Somalia joins Afreximbank as it seeks to boost Intra-African trade and economic growth

Cairo, Egypt: Somalia has formally acceded to the Establishment Agreement of African Export-Import Bank (Afreximbank), becoming the 53rd African member state of the African multilateral financial institution and bringing the Bank closer to its goal of broadening its product offerings to all parts of the continent.

In the instrument of accession signed by Hon. Hirsi Jama Gani, State Minister, Office of the Prime Minister, Somalia notified Afreximbank that Somalia “accepts, and hereby accedes, to the Agreement for the Establishment of the Bank” and pledged to undertake all necessary steps to expedite ratification of the Agreement.
Somalia’s membership of Afreximbank is a significant milestone that places the country on a path of sustainable economic transformation, upgrading of the country’s trade and industrial infrastructure, and most importantly joins the rest of the continent in the push towards continental integration and self-reliance through the African Continental Free Trade Area (AfCFTA).

Expressing deep satisfaction at Somalia’s decision to accede to the Agreement, Prof. Benedict Oramah, President and Chairman of the Board of Directors of Afreximbank, emphasised the mutual benefits to both parties. “We are delighted to welcome Somalia into the Afreximbank family. This is a significant milestone as it widens the opportunity for the Somali public and private sectors to access financing and other related interventions that addresses their real needs. By joining the Bank, Somalia embarks on a new journey of pursuing its developmental aspirations on its own terms, backed by unwavering support from Afreximbank, a bank with proven track record of supporting its Participating States in good and bad times. Today, we begin a collective journey to enable the Somali economy to realise the maximum value from its natural resources while hastening its integration into the African Continental Free Trade Area.”

Hon. Hirsi Jama Ganni, Somalia’s State Minister of the Office of the Prime Minister expressed gratitude to Afreximbank for Somalia’s membership: “On behalf of the Government of Somalia and its people, I sincerely thank Afreximbank for its efforts that led our country to become a member state of the Bank. This milestone agreement signals our commitment to becoming a key player in regional and continental development, especially through trade, under the framework of the African Continental Free Trade Area (AfCFTA). This partnership is significant to Somalia’s ongoing reconstruction and economic diversification efforts, opening doors for financial and technical support.”
Hon. Ganni added: “We urge Afreximbank to accelerate the implementation of its programs and initiatives in Somalia, aligning them with Somalia’s National Development Plan and helping it meet its ambitious development goals. This is a critical step in realising the full potential of our country and for Somalia to regain its position as a strategic trade hub within East Africa .”

This accession follows proactive engagements between Afreximbank and the Somalia government, aimed at identifying and exploring opportunities to support the country’s development agenda. A collaborative roadmap has been established to guide these efforts. Additionally, Afreximbank has initiated discussions with Somalia’s corporate and financial sectors, recognizing their vital role in delivering the Bank’s developmental programs and fostering economic growth within the country.
In the meeting with the Afreximbank team, Hon. Abdirahman Abdullahi, Governor of the Central Bank of Somalia said: “Afreximbank’s visit to Mogadishu was timely as it came just after Somalia joined the East African Community regional trade bloc in 2024, and successfully completed the Highly Indebted Poor Countries (HIPC) debt relief process. The Somali people are renowned for their trade and entrepreneurial spirit, and I urge the business community in Somalia to fully leverage the opportunities offered by Afreximbank under its financing programs, to expand their reach, drive sustainable growth, and contribute to a more connected and competitive economy.”

ENDS

About Afreximbank

African Export-Import Bank (Afreximbank) is a Pan-African multilateral financial institution mandated to finance and promote intra-and extra-African trade. For over 30 years, the Bank has been deploying innovative structures to deliver financing solutions that support the transformation of the structure of Africa’s trade, accelerating industrialization and intra-regional trade, thereby boosting economic expansion in Africa. A stalwart supporter of the African Continental Free Trade Agreement (AfCFTA), Afreximbank has launched a Pan-African Payment and Settlement System (PAPSS) that was adopted by the African Union (AU) as the payment and settlement platform to underpin the implementation of the AfCFTA.

Working with the AfCFTA Secretariat and the AU, the Bank is setting up a US$10 billion Adjustment Fund to support countries effectively participating in the AfCFTA. At the end of December 2023, Afreximbank’s total assets and contingencies stood at over US$37.3 billion, and its shareholder funds amounted to US$6.1 billion. Afreximbank has investment grade ratings assigned by GCR (international scale) (A), Moody’s (Baa1), Japan Credit Rating Agency (JCR) (A-) and Fitch (BBB). Afreximbank has evolved into a group entity which includes the Bank, its impact fund subsidiary called the Fund for Export Development Africa (FEDA), and its insurance management subsidiary, AfrexInsure (together, “the Group”). The Bank is headquartered in Cairo, Egypt.

For more information, visit: www.afreximbank.com
Follow us on X |Facebook | LinkedIn | Instagram

Media Contact:
Vincent Musumba
Communications and Events Manager (Media Relations)
Email: [email protected]