African Export Import Bank regional branch to be based in Nairobi

The cabinet has approved the establishment of the African Export Import (AFREXIM) Bank and opening of a branch office in the country to service the East African Region.

The African Export Import Bank (the “Bank”) was established in Abuja, Nigeria in October, 1993 by African Governments, African private and institutional investors as well as non-African financial institutions and private investors for the purpose of financing, promoting and expanding intra-African and extra-African trade.

The Bank was established under the twin constitutive instruments of an Agreement signed by member States and multilateral organizations, and which confers on the Bank the status of an international multilateral organization; as well as a Charter, governing its corporate structure and operations, signed by all Shareholders. The authorized share capital of the Bank is Five Billion United States Dollars (US$5 billion).

The Bank is headquartered in Cairo, Egypt. It commenced operations on September 30, 1994, following the signature of a Headquarters Agreement with the host Government in August, 1994. The Bank’s other branch offices are in Harare, Zimbabwe, and Abuja, Nigeria.

Cabinet was happy that the choice of Nairobi as host is an attestation to the recognition of the city as a regional hub of global significance. This branch will therefore take the total branches it has to four.

In July this year, Moodys gave the bank a Baa2/P-2 rating. This rating means that African Export Import Bank has capacity to meet its financial commitments. However, adverse economic conditions or changing circumstances are more likely to lead to a weakened capacity of the bank to meet its financial commitments.

The approval by cabinet was made during its sitting on 6th November, 2015 at State House Nairobi.