Liberia: House of Representatives Speedily Ratifies Act To Establish Africa Export-Import Bank

Monrovia – The House of Representatives, acting on the recommendation of its Joint Committee on Judiciary and Banking & Finance has unanimously voted in favor of a bill seeking Liberia’s ascension to the African Export-Import Bank (AFREXIMBANK) membership.

Report by Gerald C. Koinyeneh, [email protected]

The bill titled “An Act ratifying the agreement for the establishment of the African Export-Import Bank (AFREXIMBANK) was submitted by former president Ellen Johnson Sirleaf to the 53^rd Legislature in 2017 and resubmitted by President George M. Weah to the 54^th.

In a communication to House Speaker Dr. Bhofal Chambers, read in Plenary on Tuesday, June 19, President Weah indicated that Liberia stands to benefit from the bank’s support in the development of the country’s financial markets; facilitation of trade beyond the extractive sector; and attraction of foreign exchange, among others.

According to the Liberian leader, the bank has a mandate to finance and promote intra and extra-African trade through credit (trade and project financing), risk bearing (guarantees and credit insurance); and trade information and advisory services.

The Plenary then mandated its Committee on Banking and Currency and Judiciary to scrutinize the legislation and report in two weeks.

But two days later, and to the astonishment of many including those in the public gallery and Journalists covering the Lower House, the lawmakers speedily ratified the bill establishing the bank.

The Joint Committee in its report noted that the bank, when established will increase credit and trade financing to Liberian customers and investors, provide risk bearing guarantee and credit insurance and provide trade information and advisory service.

The Committee added that Liberia will be a shareholder of the bank with a time deposit account of US$10 million.

It added that the bank has an authorized capital of US$5 billion and has benefitted several African countries including Cote d’Ivoire (US$250 syndicated bridge loan facility for Port Autonome in Abidjan and US$50 million revolving loan for cocoa export).

It has also financed Gabon (US$300 million syndicated bridge loan facility for 20ton palm processing plant) and Zimbabwe (US$50 million revolving facilities for the construction of warehouse for the importation of fertilizers and blending equipment).

Other countries that have benefited from AFREXIMBANk include Cape Verde (US$34 million hotel financing), Kenya (US$842 million loan guarantee for Kenya Airways) and Nigeria (US$663 million loan for all mining needs).

Lawmaker Defends 4G Passage 

Speaking to reporters following the House’s decision, the Chairman of the Committee on Banking and Currency, Rep. Dixon Wlawlee Seiboe (Mont. Dist. 16) attributed the Joint Committee’s early report to the ability of its members to work in time; and “not because we want a 4G (super-fast) passage”.

Rep. Seibo clarified that ratification of the agreement does not mean that AFREXIMBANK will be operating in Liberia as a regular commercial bank; rather Liberia will be ascended to its membership.

“This is an ascension to membership. That is, Liberia now is in full membership of stakeholders of this bank and it gives Liberia the opportunity to get financing from the bank. So it is not about the establishment of a new bank; but ascension to a bank,” Rep. Seibo clarified.

About AFREXIMBANK

In 1993, the African governments and combination of African and global investors established the AFREXIMBANK to connect public and private sectors across Africa, and to facilitate finance.

The bank is headquartered in Cairo, Egypt, and has three regional offices located in Abuja, Nigeria; Harare, Zimbabwe and Abidjan, Cote d’Ivoire.