Libya joins African Export-Import Bank

Libya has officially become the 53rd member of the African Export-Import Bank (Afreximbank), marking a significant step towards enhancing economic integration within Africa. This milestone was announced to the media over the weekend, although the formal membership occurred earlier in the week.

As part of its membership, Libya aims to leverage Afreximbank’s support for several ambitious development projects, including the creation of a free zone in Misrata and the development of a land route connecting the country to its neighboring nations. The bank’s soft financing will play a pivotal role in these initiatives, which align with Libya’s broader goals of strengthening its position as a regional logistics hub and achieving sustainable economic growth.

Libya’s long-standing ties to Africa position it as a key player in the advancement of continental trade and economic integration. By joining Afreximbank, Libya is poised to enhance its economic and trade relations with other African countries. The partnership will open access to a wide range of financial products and services, both funded and unfunded, that are aimed at boosting Libya-Africa trade, investment in trade-enabling infrastructure, and transforming the structure of the Libyan economy.

Libya’s GDP stood at $50.49 billion in 2023, making it the 12th largest economy in Africa. Despite this, less than 10% of its trade is conducted with other African nations. This membership offers Libya a unique opportunity to increase its trade within the continent, contributing to both its own economic growth and the broader goals of Afreximbank to improve trade and economic conditions across Africa and beyond.

A stalwart supporter of the African Continental Free Trade Agreement (AfCFTA), Afreximbank has launched a Pan-African Payment and Settlement System (PAPSS) that was adopted by the African Union (AU) as the payment and settlement platform to underpin the implementation of the AfCFTA. Working with the AfCFTA Secretariat and the AU, the Bank is setting up a US$10 billion Adjustment Fund to support countries effectively participating in the AfCFTA. At the end of December 2023, Afreximbank’s total assets and contingencies stood at over US$37.3 billion, and its shareholder funds amounted to US$6.1 billion.