African financier targets firms in Big Four project

The African Export Import Bank is exploring opportunities to fund local projects, the head of its newly created Fund for Export Development in Africa (Feda) Philip Kamau said on Monday.

Dr Kamau said the funding could be allocated from the main Afreximbank coffers but also its offshoot, the $100 million (about Sh10 billion) fund.

“The products and services offered by Afreximbank and Feda can help Kenya in the implementation of its Big Four Agenda especially in the areas of increasing its manufacturing share of gross domestic product to 15 percent, food security and healthcare,” said Dr Kamau while making a presentation at the Kenya export week conference held in Nairobi.

“I suggest that the various entities involved in the implementation of Big Four Agenda can contact Afreximbank and Feda on how we can work together to support your initiatives.”

Feda, the wholly-owned development-oriented subsidiary of Afreximbank, was set up earlier this year “to leverage the role the Cairo-based Afreximbank has played in mobilising trade finance into Africa.”

The Mauritius headquartered Feda set to start operations by the fourth quarter of this year also plans to mobilise foreign direct investment into the continent.

The fund, Dr Kamau said, will invest across all market segments in Africa including Kenya but have its greatest focus on small and medium-sized enterprises.

“Feda will provide capital and related financial, non-financial and support services in Africa's trade sector with an emphasis on activities that will promote economic development and facilitate intra-African trade and export development,” he said.

“Feda investments will … also invest in mature companies and start-up business where there is a gap in the marketplace.”

Afreximbank, which finances and promotes African trade, has in the past decade become a significant player in Kenya’s economy, having financed big-ticket deals, including national carrier Kenya Airways.