Afreximbank names seven Nigerian banks as trade finance intermediaries

Seven Nigerian banks have been named Trade Finance Intermediaries of the African Export-Import Bank to enable a smoother delivery of its initiatives and credit solutions in Nigera.

A statement issued by the bank on Tuesday said the Nigerian banks as well as other banks in 29 African countries brought the number of TFIs to more than 65.

The Nigerian banks are Zenith Bank Nigeria, Stanbic IBTC Bank, Union Bank of Nigeria, Sterling Bank of Nigeria, Fidelity Bank of Nigeria, First Bank of Nigeria and FCMB Nigeria.

In line with its charter and mandate, Afreximbank said it delivered its products and services with and through central banks, commercial banks and other eligible banks and non-bank financial institutions.

According to the statement, the Trade Finance Intermediaries also act as Local Administrative Agents for Afreximbank’s facilities, adding that the bank has put in place the Trade Finance Intermediary initiative to establish lasting relationships with these partner financial institutions.

The statement said, “New guidelines for appointing Trade Finance Intermediaries were introduced in 2017. As a result, Afreximbank has strengthened their role in assisting the bank to reach eligible exporters and importers in Africa and beyond. Accredited according to rigorous criteria, Trade Finance Intermediaries are trained to understand Afreximbank’s mandate, strategy, process, and procedures.

“The further expansion of Afreximbank’s Trade Finance Intermediary initiative enlarges the accredited network of financial institutions that can work alongside the bank to facilitate the transformation and development of trade across Africa.”

“Already this year, Afreximbank has onboarded more than 35 additional Trade Finance Intermediaries and more are expected to be approved during 2021. The local presence and knowledge of Trade Finance Intermediaries ideally positions them to play an important role in delivering Afreximbank’s credit solutions.”

freximbank said Trade Finance Intermediaries were also instrumental in helping to ensure the success of Afreximbank’s initiatives such as the newly launched MANSA repository platform – which provides a centralised pan-African source for Due Diligence and Know-Your Customer data – and the Pan African Payment and Settlement System.

It added that the PAPSS would enable intra-African trade and commerce payments to be made in African currencies in furtherance of the goals of the African Continental Free Trade Agreement.