AFREXIM Bank Regional Office Set to Open in Kampala next Month

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Uganda's Finance Minister, Matia Kasaija (L) shakes hands with Prof. Benedict Oramah, President of the African Export-Import Bank just after signing a hosting agreement and memorandum of understanding with Afreximbank. /PPU
By :

Baluku Geoffrey

The East African regional office of the African Export-Import Bank (Afreximbank) is set to open in Kampala next month.

This was revealed by President Museveni after he met with the management team of AFREXIM bank at State House, Entebbe. The delegation was led by the chairman Intra-African Trade Fair advisory council and former Nigerian President Olusegun Obasanjo, together with AFREXIM president Prof. Benedict Okey Oramah.

“I am happy to inform you that we have signed a hosting agreement and memorandum of understanding with AFREXIM bank. By the agreement, Uganda will host the AFREXIM East African regional office starting next month,” President Yoweri Kaguta Museveni said.

President Museveni meets the management team of Afreximbank at State House, Entebbe. /PPU

Mr. Museveni noted that hosting the bank comes with benefits to the country, including employment, rent and taxes to the government.  Its set up alone could see up to USD 30 million (111 billion Shillings) come in the country.

“The bank will also lead to job creation and expansion of cash liquidity which will be consequential in changing the population structure of Uganda from pre-capitalism,” Museveni said.

“Africans need to get out of the pre-capitalism state of living and this bank will be beneficial to those who want to engage in production and processing business, so we can keep our jobs here,” he added.

Africa Tembelea has also learnt that Afreximbank with assets worth USD12 billion, will support export and import trade through loan facilities to Ugandan businesses, offer credit facilities to government to enable financing of government projects as well as improve trade literacy through the trade centre which will be situated in Kampala, Uganda.

Benedict Oramah, the chairman and president of Afreximbank told journalists last year that they had considered Uganda because Kenya delayed to give them necessary approvals despite waiting for more than three years.

– AfreximBank –

Last year, Frank K. Tumwebaze, the Minister of Information Communication and Technology and National Guidance, said during a media briefing that Cabinet had approved a plan to have Afreximbank hosted in Kampala.

“It (Cabinet) approved establishment of the African Export-Import Bank Regional Office in Uganda (implementation) Bill, 2018,” he said.

Headquartered in Cairo Egypt, Afreximbank is a supranational financial institution, owned by African governments as shareholders. It also has external institutions like the World Bank and International Monetary Fund (IMF) as shareholders.

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