Uche Usim, Abuja
To bolster African economies hammered by the COVID-19 pandemic, the African Export-Import Bank (Afreximbank), the International Islamic Trade Finance Corporation (ITFC), the Trade Finance Arm of the Islamic Development Bank (IsDB) Group; and the Arab Bank for Economic Development in Africa (BADEA), are to launch a $1.5 billion Collaborative COVID-19 Pandemic Response Facility (COPREFA) to help the continent get back on its feet.
COPREFA will be accessed by eligible central banks, commercial banks and businesses to finance the import of medical supplies, as well as agricultural equipment and fertilizers essential for addressing the pressing food production deficit.
COPREFA is also designed to support African economies to overcome a myriad of challenges, including commodity price shocks, a significant drop in tourism, and disruption to supply chains and export manufacturing. It will also address the sudden declines in financial flows, including a drop off in trade and project finance, migrant remittances, portfolio investment and Foreign Direct Investments (FDIs).
A key attribute of the COPREFA facility is the speed at which financial assistance can be provided through all partners involved. The impact of the COVID-19 pandemic has proven to be fast-paced, requiring support that can be deployed quickly and flexibly to prevent sharp declines in national economies. Standard eligibility criteria and credit appraisal process have been developed by COPREFA partners in order to facilitate implementation of the facility.