Editorial: Navigating global volatility through African cooperation

With the ongoing Middle East conflict, it is gratifying to learn that the African Export-Import Bank (Afreximbank) has announced a sweeping US$10billion Gulf Crisis Response Programme (GCRP) aimed at protecting African and Caribbean economies from the severe shocks.
Approved by the Bank’s Board of Directors, this initiative comes in response to an escalation of hostilities in the Gulf region on 28 February this year that has disrupted global energy and trade flows.

Serving as a critical hub for oil, liquefied natural gas (LNG) and fertilisers, the strategic Strait of Hormuz disruption has sent ripples across the world economy – with African and CARICOM nations, many of which rely heavily on fuel, fertiliser and food imports, being particularly vulnerable.

According to Afreximbank, the GCRP is designed to sustain essential imports such as fuel, LNG, food, fertilisers and pharmaceuticals by providing short-term foreign exchange and liquidity support to vulnerable member-states.
It will also enable African energy and mineral exporters to benefit from elevated commodity prices and rerouted trade flows by offering pre-export finance, working capital and inventory financing.

It further seeks to provide relief for tourism and aviation industries in Africa and the Caribbean, which have been hit hard by the crisis.
Beyond immediate interventions, Afreximbank intends using the programme to build long-term resilience by scaling productive capacities in energy and mineral sectors and accelerating the completion of critical infrastructure projects – including ports and logistics facilities – that have been delayed by the conflict.

Dr. George Elombi, President and Chairman of Afreximbank’s Board of Directors, noted that this programme reflects the Bank’s proactive approach to crisis management. The intervention, he noted, will help African countries adjust smoothly to current disruptions while strengthening their resilience against future shocks.
The GCRP builds on Afreximbank’s track record of emergency interventions in times of global volatility.

Already, Afreximbank has begun implementing the GCRP by partnering with banks and corporates to secure supplies of fuel, energy, fertilisers and food imports that have been disrupted by the protracted Gulf crisis.
The Bank is also spearheading a coordinated regional response in collaboration with the UN Economic Commission for Africa (UNECA), African Union Commission (AUC), African Continental Free Trade Area (AfCFTA) Secretariat and Caribbean Community (CARICOM) Secretariat.

With total assets and contingencies of over US$40.1billion as of December 2024 and shareholder funds amounting to US$7.2billion, the Bank has consistently deployed innovative financing structures to support trade and industrialisation across the continent.

The post Editorial: Navigating global volatility through African cooperation appeared first on The Business & Financial Times.

Read Full Story