The Caribbean and the broader CARICOM financial sector, Access Bank, in conjunction with the Fund for Export Development in Africa (FEDA), has inked a significant $220 million capital mobilization deal with the African Export-Import Bank (Afreximbank).
This announcement was made during the ongoing 2023 AfriCaribbean trade and investment forum in Georgetown, Guyana, News About Nigeria reports.
Herbert Wigwe, the Group Managing Director of Access Corporation, revealed the details of this significant collaboration.
The strategic signing aims to fortify the financial landscape in the Caribbean, thereby supporting economic growth and development initiatives while simultaneously establishing credit mechanisms that will facilitate robust investment.
The injection of $220 million in capital, orchestrated by Access Bank, is poised to boost the Caribbean’s financial services sector, and by extension, the CARICOM region.
This move is set to have a multiplier effect on banking capital, resulting in the mobilization of more than $2 billion for lending opportunities, specifically in infrastructure and production finance across the Caribbean.
Wigwe expressed his enthusiasm for the possibilities this venture promises: “Access Bank is extremely excited for today to be the beginning of a journey that we know will yield a lot of good fruit, a lot of good growth, and facilitate trade and further investment between Africa and the Caribbean.”
He emphasized the evolving landscape in which international banks are making strategic decisions, noting that compliance is a key factor in the exodus of European banks from Africa. This dynamic underscores the importance of this strategic partnership in ensuring economic growth and financial stability.
Kanayo Awani, Executive Vice-President of Intra-African Trade Bank at Afreximbank, highlighted the need for increased trade and investments between Africa and the Caribbean. Current trade figures indicate that trade between the two regions is less than 1 percent and predominantly concentrated in minerals and chemicals.
The collaboration between Access Bank, FEDA, and Afreximbank offers a promising path to strengthen economic ties and facilitate trade growth in both regions, bringing forth a new era of financial and economic cooperation.
