The African Export-Import Bank (Afreximbank) has committed a $200 million envelope to support the Fund for Export Development in Africa (FEDA), which will have its permanent headquarters in Rwanda.

This was confirmed by Louise Kanyonga, the Chief Strategy and Compliance at the Rwanda Development Board (RDB), during an exclusive interview with The New Times on Wednesday, February 18.

Established in 2019, FEDA is an equity investment fund and a subsidiary of Afreximbank that seeks to fund African businesses to promote intra-African trade and facilitate foreign direct investment flows into the continent’s trade and export sectors.

"It is expected to have an initial commitment of $200 million from the bank. Rwanda is hosting the permanent headquarters of the fund,” Kanyonga said in a statement.

She added, "The Fund has been set up to implement Afreximbank’s Equity Investment Programme. It provides seed capital to companies operating in Africa, emphasising activities that would promote and facilitate intra-African trade, trade-related infrastructure and value-added exports, both goods and services.”

The move follows weeks after African countries kicked off trading under the African Continental Free Trade Area (AfCFTA) agreement.

Under the agreement, Kanyonga highlighted that the Fund will among others benefit Rwandan and African businesses that fall within the priority areas for the fund.

When pressed for the details on the eligibility criteria, she said, "The Fund Management Company will determine business eligibility. More details will be made available once the fund becomes fully operational.”

"The fund will soon be fully operational. There have been delays occasioned by the Covid-19 pandemic and the sad and untimely passing of the FEDA CEO Dr Philip Kamau-however, business operations have progressed,” Kanyonga added.

The government is currently spearheading efforts to turn the country into an international financial Centre. Rwanda Finance Ltd was set up to take on that role.