The African Export-Import Bank (Afreximbank) has announced that the Fund for Export Development in Africa (FEDA) – its development impact-oriented subsidiary – has entered into a Joint Venture arrangement with Gateway Partners (Gateway) to co-establish the Africa Credit Opportunities Fund (ACOF).
This partnership, a first of its kind between an African Development Finance Institution and an alternative investment manager, is intended to broaden and strengthen Afreximbank’s support for the continent by enhancing the Bank’s scope of intervention beyond its traditional trade finance products.
The ACOF is a unique platform that brings together the institutional expertise and relationships of Afreximbank and Gateway to provide much-needed financing solutions to businesses across Africa.
It will focus on the growing opportunity for structured credit instruments for high quality businesses across the continent. In this way, the fund will support Afreximbank’s developmental mandate: including, among others, the promotion of intra-African trade and development of value-added exports in Africa.
This will stimulate growth in intra-African trade, employment, manufacturing and value addition, foreign exchange earnings and tax revenues – the promotion of which is particularly important in the pandemic-adjusted era.
The ACOF will be managed by Gateway Partners, a leading emerging markets-focused alternative investment manager with offices in Dubai and Singapore.
Gateway, whose partners have a collective 200 years’ experience in emerging markets, a deep understanding of African markets and strong network of relationships in Africa, has demonstrated its ability and commitment to deliver superior results for the ACOF.
Professor Benedict Oramah, President of Afreximbank said: “We are pleased to partner with Gateway to establish the ACOF. This fund, which we are supporting with a significant capital commitment, allows us to scale the Bank’s impact and offer new products and solutions to existing and new customers. We invite other partners, investors and development finance institutions, within and outside Africa, to participate in this attractive and needed initiative.
“We are very excited that our newly-created initiative, FEDA, which has enabled us to create new partnerships such as this one with Gateway. In addition to FEDA’s primary investment activities, this will further position it as a leading player in the investment landscape across Africa.”
Viswanathan Shankar, CEO of Gateway said: “Gateway Partners is delighted to partner with FEDA in this transformational endeavour. The demand for credit across the continent is set to surge, while the supply side remains constrained.
ACOF will attempt to bridge this gap in a responsible, impactful and sustainable manner while boosting trade and investment flows.”