The Fund for Export Development in Africa (FEDA) has today, March 20, launched its permanent offices in Rwanda, officially kicking off its operations in the country and committing to play a key role in advancing investments on the continent.
FEDA is the investment platform of the African Export Import Bank (Afreximbank).
Officials say its Kigali office, which is located in the I&M Bank building in the Central Business District. is set to become a cornerstone in promoting industrialisation and driving intra-Africa trade.
Rwanda has played a key supporting role in being the first of the 12 African countries to accede and ratify the FEDA Establishment Agreement and in hosting FEDA and the AfCFTA Adjustment Fund Corporation.
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As the Impact Investment Fund for Africa’s export transformation, FEDA seeks to fill the $110 billion gap in equity financing on the continent. The Fund will also act to bring investment partners and financial institutions together.
"Having Afrexim’s FEDA domicile the fund in Rwanda brings enormous benefits to the country including improving our balance in forex and dealing better against depreciation. The presence of FEDA offers more financing avenues to our private sector who can now easily access more capital,” Herbert Asiimwe, Head of Financial Sector Development at the Ministry of Finance and Economic Planning, told The New Times.
The increasing presence of international banks and funds, Asiimwe said, comes as a result of Rwanda’sstrategy to position itself as a financial hub.
"The government has been deliberately putting in place an enabling environment of regulatory frameworks and skills that can attract most international banks,” he noted.
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Patient Sayiba Tambwe, Executive Chairman of African Desk and Board Member of the AfCFTA Adjustment Fund, said that the development shows that trade facilitation is well implemented in Rwanda.
"Having FEDA offices here in Kigali sends a signal to other countries that Africa economic integration is a reality.”