The Board of Directors of African Export-Import Bank (Afreximbank) has approved a US$10 billion Gulf Crisis Response Programme (GCRP). This program aims to insulate African and Caribbean economies, financial institutions and corporates from the impact of the ongoing Gulf crisis.
Given the significance of the Gulf region as a primary global source of oil, Liquid Nitrogen Gas (LNG), and fertilisers, as well as the critical role of the Strait of Hormuz, the outbreak of the conflict has triggered wider global repercussions. These include adverse effects on African and CARICOM economies.
These impacts specifically affect nations that heavily rely on fuel, fertiliser, and food imports. They also impact those exposed to Gulf shipping corridors, investment flows, tourism and remittance inflows.
Gulf Crisis Response Programme (GCRP)
GCRP is designed to, among other things, sustain essential imports, including fuel, LNG, food, fertiliser, and pharmaceuticals. It does so by providing vital short-term Foreign Exchange (FX) and liquidity to support vulnerable member states.
It further aims to empower African energy and minerals exporters to capitalise on elevated prices and rerouted trade flows. This is done by scaling productive capacity in strategic commodities, through pre-export finance, working capital, and inventory financing.
Additionally, it provides short term relief to African and Caribbean member states whose tourism and aviation industries have been adversely impacted by the crisis. The programme is also designed to build the medium to long-term resilience of African and Caribbean economies against future shocks. It achieves this by scaling productive capacities for producers and exporters of energy and minerals. It also accelerates the completion of critical energy, port, and logistics infrastructure projects in African and Caribbean member states, delayed by the conflict.
Commenting on the facility, Dr. George Elombi, President and Chairman of the Board of Directors at Afreximbank said:
“This crisis response programme is in tune with our DNA. We understand how our economies work and the pain points associated with these transitory crises.
“The programme will support African countries in adjusting smoothly to the crisis while strengthening their resilience to future shocks through interventions that transform the structure of their economies. I commend the Board of Directors of Afreximbank for their proactivity and fortitude in approving this intervention programme.”
