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The bank also marked its 30th anniversary, celebrating three decades of dedication to financing and fostering trade across Africa
Kampala, Uganda | THE INDEPENDENT | Africa’s multilateral lender, African Export-Import Bank has recorded a significant leap in its financial performance for the year ended Dec.31, 2023, with net interest income soaring Soaring 58.67% to US$1.4 billion.
This remarkable growth in net interest income, which boosted the Net Interest Margin from 3.83% to 4.96% is primarily attributed to the expansion of the bank’s loan and advances portfolio.
The bank’s strategic execution, particularly its commitment to its 6th Strategic Plan, has been central to achieving these results. Focused efforts on “Promoting Intra-African Trade,” “Facilitating Industrialization and Export Development,” “Strengthening Trade Finance Leadership,” and “Improving Financial Performance and Soundness” propelled the bank well beyond its expected financial targets for the year.
Operating in a challenging environment marked by global inflationary pressures, the bank navigated these headwinds with a strategic investment in human capital to bolster its business activities.
As a result, total operating expenses reached US$304.5 million, a 34.93% increase from 2022, aligning with the bank’s expectations under its ongoing five-year Sixth Strategic Plan set to continue until December 2026.
The bank’s total assets witnessed a robust growth of 20.12% to US$33.5 billion (FY2022: US$27.9 billion), largely fueled by an uptick in net loans and advances to customers alongside cash and cash equivalents.
Correspondingly, the bank’s shareholders’ funds experienced a healthy growth of 17.55% to US$6.1 billion compared to US$5.2 billion in the prior year, bolstered by US$546.8 million in retained income and US$349.8 million in fresh equity raised during the year in support of the GCI II programme.
Afreximbank Senior Executive Vice President, Denys Denya, said Afreximbank Group not only exceeded its budgetary expectations but also significantly outperformed its achievements from the previous year.
“Our dedication to promoting industrial growth, enhancing intra-African trade, and advancing value-added exports remains unwavering. With a prudent balance between profitability, liquidity, and safety, we aim to continue this trajectory of delivering profitable, sustainable growth and maintaining quality assets,” he said.
The bank’s subsidiary, the Fund for Export Development in Africa (FEDA), garnered multilateral support, underpinning Afreximbank’s mission to deliver sustainable financial support to African economies. The bank also marked its 30th anniversary, celebrating three decades of dedication to financing and fostering trade across Africa.
Afreximbank’s journey
Established in 1993, Afreximbank serves as Africa’s premier institution for promoting and financing trade both within the continent and externally.
The bank boasts a diverse membership of 50 African countries, including Uganda, alongside African central banks, public institutions, the African Development Bank, financial institutions, and private investors. It also includes non-African stakeholders such as international banks and export credit agencies, with notable members like Standard Chartered Bank, HSBC, Citibank, China Exim Bank, and Exim India.
Afreximbank operates through five strategic regional offices to enhance its service delivery across the continent: Harare for Southern Africa, Abidjan for Francophone West Africa, Abuja for Anglophone West Africa, Kampala for Eastern Africa, and Yaounde, which caters to the Central African market.
Furthermore, Afreximbank inaugurated its Caribbean Office, underscoring its commitment to facilitating trade between Africa and the Caribbean, in line with its Diaspora Strategy and the African Union’s recognition of the African Diaspora as the continent’s sixth region.
