Africa: Afrexim, Gateway Establish Business Fund for Africa

AFREXIMBANK through its development impact-oriented subsidiary, Fund for Export Development in Africa has entered into a partnership with Gateways Partners in co-establishing a fund that offers financing solutions to business across the continent.

Gateway Partners is a leading emerging markets-focused alternative investment manager with offices in Dubai and Singapore.

In a statement, AfreximBank said the fund, which is called the Africa Credit Opportunities Fund (ACOF) is intended to widen the bank’s support for the continent beyond traditional trade finance products.

“AfreximBank and the Fund for Export Development in Africa (FEDA), has entered into a joint venture arrangement with Gateway Partners (Gateway) to co-establish ACOF.

“This partnership, a first of its kind between an African Development Finance Institution and an alternative investment manager, is intended to broaden and strengthen AfreximBank’s support for the continent, by enhancing the bank’s scope of intervention beyond its traditional trade finance products,” it said.

ACOF is a unique platform that brings together the institutional expertise and relationships of AfreximBank and Gateway to provide much needed financing solutions to businesses across Africa.

It will focus on the growing opportunity for structured credit instruments for high quality businesses across the continent.

In this way, it is hoped that the fund will support AfreximBank’s developmental mandate, including, among others, the promotion of intra-African trade and the development of value-added exports in Africa.