With the prevalent dependency of African economies on external supply of fertilisers and grains, and up to 30% of cereals imported from Russia, ensuring that critical trade flows continue uninhibited remains the priority of Afreximbank and its African member states.
The lingering global food security challenges and the critical role trade with Russia plays in guaranteeing Africa’s food security was at the core of discussions for Afreximbank at the second Russia-African Economic and Humanitarian Forum, which was held at St Petersburg from 27 to 29 July.
Addressing the summit, Benedict Oramah, the president and chairman of the bank, said: “Afreximbank is working with the African Union Commission, the United Nations system and Russian partners to use the Africa Trade Exchange e-commerce platform to facilitate the seamless flow of goods and payments in any currencies chosen by sellers and buyers in a transparent manner.
“The platform pools Africa’s demand for grains and fertilisers, and the bank has placed an aggregate credit limit of US$3 billion to support these transactions.
“Beyond the food security priorities, and in line with the Bank’s mandate, Afreximbank and the Russian Export Centre are collaborating to promote trade and investment in other critical sectors, with the focus on activities that will help integrate the African economy and advance the implementation of the African Continental Free Trade Area agreement.”
Trade flows between Africa and Russia reached almost US$20 billion in the four years prior to 2021, compared to about U$10 billion in 2015, despite the Covid-19 pandemic and other significant global crises, bringing it closer to the target of US$40 billion by 2026.
– APO Group
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