African Export-Import Bank launches $4 billion facility for African countries hit by Ukraine crisis

The African Export-Import Bank (Afreximbank) has announced a new multi-billion-dollar initiative to help member countries battle soaring import costs and foreign currency challenges stemming from the Ukraine conflict.

Afreximbank’s board has approved additional financing of US$4 billion for the Ukraine Crisis Adjustment Trade Financing Programme for Africa (UKAFPA), a package comprised of several types of credit facilities.

“UKAFPA is a response to an urgent call for emergency intervention by member states of the bank,” Afreximbank says.

“There is some urgency to meet these requests to avoid catastrophic social conditions across Africa and reduce the risk of their morphing into political challenges,” the bank adds, while noting financing requests have already exceeded US$15 billion.

The programme includes financing to help member countries deal with an immediate hike in import prices for commodities produced in Ukraine and Russia, including oil, gas and wheat.