Somalia joins Afreximbank, Seeks to Boost Intra-African Trade and Economic Growth

[Deeq A.]

Professor Benedict Oramah, President of Afreximbank and Chairman person of the PAPSS Management Board

Cairo, Egypt// — Somalia has formally acceded to the Establishment Agreement of the African Export-Import Bank (Afreximbank) (www.Afreximbank.com), becoming the 53rd African member state of the African multilateral financial institution and bringing the Bank closer to its goal of broadening its product offerings to all parts of the continent. 

In the instrument of accession signed by Hon. Hirsi Jama Gani, State Minister, Office of the Prime Minister, Somalia notified Afreximbank that Somalia “accepts, and hereby accedes, to the Agreement for the Establishment of the Bank” and pledged to undertake all necessary steps to expedite ratification of the Agreement.

Somalia’s membership of Afreximbank is a significant milestone that places the country on a path of sustainable economic transformation, upgrading of the country’s trade and industrial infrastructure, and most importantly joins the rest of the continent in the push towards continental integration and self-reliance through the African Continental Free Trade Area (AfCFTA).

Expressing deep satisfaction at Somalia’s decision to accede to the Agreement, Prof. Benedict Oramah, President and Chairman of the Board of Directors of Afreximbank, emphasised the mutual benefits to both parties.

“We are delighted to welcome Somalia into the Afreximbank family. This is a significant milestone as it widens the opportunity for the Somali public and private sectors to access financing and other related interventions that address their real needs.

By joining the Bank, Somalia embarks on a new journey of pursuing its developmental aspirations on its terms, backed by unwavering support from Afreximbank, a bank with a proven track record of supporting its Participating States in good and bad times. Today, we begin a collective journey to enable the Somali economy to realise the maximum value from its natural resources while hastening its integration into the African Continental Free Trade Area.”

Hirsi Jama Ganni, Somalia’s State Minister of the Office of the Prime Minister expressed gratitude to Afreximbank for Somalia’s membership: “On behalf of the Government of Somalia and its people, I sincerely thank Afreximbank for its efforts that led our country to become a member state of the Bank.

This milestone agreement signals our commitment to becoming a key player in regional and continental development, especially through trade, under the framework of the African Continental Free Trade Area (AfCFTA). This partnership is significant to Somalia’s ongoing reconstruction and economic diversification efforts, opening doors for financial and technical support.”

Hon. Ganni added: “We urge Afreximbank to accelerate the implementation of its programs and initiatives in Somalia, aligning them with Somalia’s National Development Plan and helping it meet its ambitious development goals. This is a critical step in realising the full potential of our country and for Somalia to regain its position as a strategic trade hub within East Africa .”

This accession follows proactive engagements between Afreximbank and the Somalia government, aimed at identifying and exploring opportunities to support the country’s development agenda.

A collaborative roadmap has been established to guide these efforts. Additionally, Afreximbank has initiated discussions with Somalia’s corporate and financial sectors, recognizing their vital role in delivering the Bank’s developmental programs and fostering economic growth within the country.

In the meeting with the Afreximbank team, Abdirahman Abdullahi, Governor of the Central Bank of Somalia said: “Afreximbank’s visit to Mogadishu was timely as it came just after Somalia joined the East African Community regional trade bloc in 2024, and completed the Highly Indebted Poor Countries (HIPC) debt relief process.

The Somali people are renowned for their trade and entrepreneurial spirit, and I urge the business community in Somalia to fully leverage the opportunities offered by Afreximbank under its financing programs, to expand their reach, drive sustainable growth, and contribute to a more connected and competitive economy.”

Source: African eye report

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