By KHRISNA RUSSELL
Tribune Chief Reporter
krussell@tribunemedia.net
A MEMORANDUM of understanding was signed between the government and the African Export-Import Bank, allowing The Bahamas to join other Caribbean states in establishing a partnership with the multilateral trade finance institution.
Yesterday, Prime Minister Philip “Brave” Davis described the signing as an historic moment for The Bahamas, adding that it would fill the gap in the region for private sector businesses seeking international funding.
The MoU was signed at the Office of the Prime Minister at West Bay Street, where Financial Secretary Simon Wilson and bank executives - Ayman El Zoghby, head of trade and corporate finance and Temwa Gondwe, senior manager trade facilitation – were in attendance.
Mr Davis said: “In keeping with its mission, the African Exim Bank seeks to expand its operation to Caribbean member states through the establishment of the Caribbean Exim Bank, which will provide services to the region such as trade and project financing, export development, guarantees and trade information, and advisory services.
“In other words, it will fill the gap in the region for private sector businesses seeking international funding which is presently not readily available through the CDB, which is the Caribbean Development Bank.
“This partnership holds much promise. It provides for the promotion and financing of ‘South-South trade’ between African countries and Caribbean Member States.
“Provision is also made for financing exports and imports of non-traditional African goods and services, the provision of insurance, and guaranteeing service coverage for commercial and non-commercial risks associated with African exports and imports.
“Member states will also support the bank in acting as an intermediary between African traders and traders of the Caribbean community, and to facilitate and support the execution of banking operations and the borrowing of funds.
“The African Exim Bank has also indicated that once the regional office has been established that it envisaged committing an investment of US$700 million in the Caribbean as quickly as possible.”
Through this, Mr Davis said the CARICOM Community will be able to unlock further economic and social benefits at a critical time when so much support is needed.
He went on to thank representatives of the bank for visiting the county expeditiously.
“I must say that the bank has moved with rapid speed because this follows upon a meeting with myself and the chairman of the bank in Egypt at Sharma El-Sheikh.
“Two days after my meeting with him he had representatives in The Bahamas and I want to thank them for their expeditiousness to notice what we are doing and to fulfil our dream of connecting and putting this bridge between the Caribbean and Africa.”
For his part, Mr Zoghby said the bank was moving to soon establish an office in the region.
He also clarified that rather than allocating monetary investment for specific countries, there would be an integration for the region.
“We’re witnessing the first of milestones with The Bahamas joining the African Export Import Bank as a member state, which will unlock so many of our activities, financing programmes and facilitation initiatives into the Caribbean,” Mr Zoghby said.
“We’re starting immediately on the establishment of some representation for the African Export Import Bank here in the Caribbean,” he said further. “That will evolve eventually into an EXIM bank that will support trade and investment between Africa and the Caribbean.
“So, we’ve laid the foundation for this and we’re starting to move on that opportunity.
“For the investments we’ve already started a programme, Africa Caribbean Trade and Investment Promotion Programme, for $250m that we are immediately launching for financing and investments.
“We have not allocated a certain amount for certain countries,” he also said.
“We are doing this on an integrated basis for the whole of the Caribbean but the sooner the opportunities come up the bank will provide the financing and we’re active as can be. So, if plans are ready, we will immediately do them in The Bahamas.”
Among the projects that have been discussed so far involving the bank include further developing transportation and poultry farming among other things.
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