Afreximbank earmarks $2bln to ExAFS for food security in Egypt, 3 African countries

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African Export-Import Bank (Afreximbank) has signed a framework agreement to pledge $2 billion to the Export Agriculture for Food Security (ExAFS) initiative, Al Arabiya reported on November 13th.

The agreement includes the governments of Egypt, Chad, Malawi, and Zimbabwe, in addition to Arise Integrated Industrial Platforms (Arise IIP).

The financing will be used to increase agricultural production, processing, and intra-African trade. It will also give African farmers and agribusinesses the chance to expand their reach into new, larger markets across the continent.

By lowering reliance on other areas for critically needed food commodities, ExAFS will help address Africa's food insecurity problems, which include a nearly 20% hunger rate, while assuring improved sales and returns for those involved in the agricultural value chain in Africa.

Afreximbank will oversee the execution of partnership activities and serve as ExAFS's financier, advisor, and facilitator.

The governments of Malawi, Zimbabwe, and Chad, the agricultural produce's pilot origin countries, will act as policy enablers and make sure that the Agricultural Transformation Centers (ATCs ) have a favorable environment.

The primary export market for agricultural products will be Egypt.