$1.5 billion pandemic response facility unveiled
A US$1.5 billion Collaborative COVID-19 Pandemic Response Facility (COPREFA) has been launched by the African Export-Import Bank (Afreximbank) and three of its partners.
According to Afreximbank, the facility is meant to support African economies with rapid financial assistance to reduce the impact of the pandemic
Afreximbank, International Islamic Trade Finance Corporation (ITFC) and Arab Bank For Economic Development in Africa (BADEA) are involved.
COPREFA will be accessed by eligible central banks, commercial banks and businesses to finance the import of medical supplies as well as agricultural equipment
Afreximbank president, Benedict Oramah, noted that the COVID-19 pandemic had devastated many economies with Africa not been spared.
The initiative, therefore, was designed to support African economies to overcome a numerous of challenges, including commodity price shocks, a significant drop in tourism, and disruption to supply chains and export manufacturing.
It will also address the sudden declines in financial flows, including a drop off in trade and project finance, migrant remittances, portfolio investment and Foreign Direct Investments.
Professor Oramah said Afreximbank’s priority had always been to step-up when markets fell.
“COPREFA, a product of a unique international partnership, is a major contribution to the global fight against the pandemic and will work alongside our other programs to ensure Africa’s future remains bright beyond this economic shock. We thank our partners for the confidence,” he said.
The co-financed facility, leverages strategic partnerships with other Multilateral Financial Institutions and other international financial institutions in co-financing to support African economies on navigating the impact of COVID-19.
Afreximbank has a strong track record of supporting African economies during financial crises.
In March 2020, a financial package called the Pandemic Trade Impact Mitigation Facility was launched solely by Afreximbank to support economies through the pandemic – a facility of which over US$5 billion has been disbursed, will be implemented alongside COPREFA.
ITFC Chief Executive Officer, Hani Salem Sonbol, said the organisation had worked extensively since the start of the COVID-19 outbreak to provide comprehensive support to some of the most vulnerable countries.
“Providing fiscal bandwidth and practical support to SMEs and medical communities in African countries will deliver immediate relief from the supply side restraints on personal protective equipment caused by the pandemic.
“The multilateral arrangement that ITFC is embarking upon with our strategic partners will boost economic activity when and where it is needed most and help many countries maintain food security at a time when global commodity supply chains are being challenged and import activity sharply reduced,” Mr Sonbol said.
BADEA Director General, Sidi Ould TAH said the institution sought that it would require an unprecedented cooperation and measures to tackle these challenges since the COVID-19 pandemic posed drastic challenges that are reshaping the scene of the global economy.
“DFI’s as the Arab Bank for Economic Development in Africa (BADEA), with its partners, have been and will always be; supporting the continent through tough and good times as a reliable, strong and resourceful financial institution,” Dr TAH said.