Finance

This partnership with Afreximbank offers a unique opportunity for Libya to expand its trade ties across the continent and drive economic growth. (Image source: Adobe Stock)

The State of Libya has officially joined the African Export-Import Bank (Afreximbank), becoming the 53rd member, marking an important step toward enhancing continental trade and economic integration

This accession reflects Libya’s commitment to advancing Africa’s integration agenda through trade and investments, particularly in North Africa.

This partnership opens the door for Libya and Afreximbank to collaborate on several key development projects, with a focus on trade facilitation, infrastructure, and financial support. Notable projects include financing the development of the Misurata Free Zone and the construction of a road linking Libya, Chad, and Niger, which is expected to boost intra-African trade. Afreximbank will also provide technical and financial support to the Sahel-Saharan Bank for Investment and Trade (BSIC) to expand its operations in East Africa and assist Libyan exporters in gaining access to trade finance and African markets.

Minister Al-Mabrouk Abdullah highlighted the strategic importance of this partnership for Libya’s economic reconstruction and diversification, stated, “This partnership will not only provide vital financial and technical support to Libya but will also enhance the country’s role in intra-African trade.”

Benedict Oramah, president and chairman of Afreximbank, welcomed Libya’s membership, emphasizing the country’s historical significance within the continent:
“We are excited to warmly welcome the State of Libya to the Afreximbank Global Africa family. Libya’s historical connections with the rest of the continent positions it as a crucial player in advancing continental trade and economic integration. By joining, Libya’s Public and Private Sector entities will gain access to our extensive range of funded and unfunded products and services, particularly those geared towards deepening Libya-Africa trade and investment relations, investing in trade-enabling infrastructure, as well as transforming the structure of the Libyan economy.”

Libya’s GDP reached US$50.49bn in 2023, ranking it as Africa’s 12th largest economy. However, less than 10% of its trade is with other African nations. This partnership with Afreximbank offers a unique opportunity for Libya to expand its trade ties across the continent and drive economic growth.

The ACV Fund is projected to reduce approximately 17mn tons of CO2 emissions. (Image source: AfDB)

The Persistent Africa Climate Venture Builder Fund (ACV Fund) has received a US$10mn boost from the African Development Bank in order to propel climate technology entrepreneurship across sub-Saharan Africa

The US$10mn investment has been provided through the Sustainable Energy Fund for Africa (SEFA) and will help ACV Fund address the critical financing needs for early-stage climate technology entrepreneurs. Focusing on high-potential ventures in key sectors (such as solar, electric mobility, agriculture, circular economy, and energy efficiency), the initiative seeks to support African entrepreneurship and will utilise the investment in order to unlock US$70mn in funding for African climate-focused ventures.

“This commitment reflects the African Development Bank's confidence in our climate investing and in-depth Venture Building model in sub-Saharan Africa,” remarked Wairimu Karanja, partner and chief legal officer at Persistent. “The ACV Fund invests financial and human capital in early-stage companies led by outstanding entrepreneurs and gender-aligned teams that can drive meaningful climate impact while achieving commercial scalability.”

SEFA's strategic investment is expected to attract additional private capital while mitigating the risks associated with early-stage climate technology businesses. This blended finance approach addresses the shortage of equity financing that often hinders the growth of climate ventures.

The ACV Fund is projected to deliver transformative impacts, including the addition of 200MW of renewable energy capacity, expanded energy access for 420,000 households and 31,000 businesses, as well as the creation of over 66,000 jobs.

“Africa is at the forefront of both the climate crisis and the climate opportunity,” commented João Duarte Cunha, manager of the bank group’s renewable energy funds division, which oversees SEFA. “We are keen to catalyse more risk and venture capital to support promising African technology start-ups developing commercial solutions to complex climate and development issues. We look forward to our partnership with Persistent as one of the more seasoned early-stage investors in the continent, with a strong track record in energy access and clean energy transition.”

The facility is expected to support around US$1.8bn of trade over the next three years. (Image source: TBD)

The African Development Bank (AfDB) and the Eastern and Southern African Trade and Development Bank (TDB) has signed a Trade Finance Unfunded Risk Participation Agreement (RPA) in order to bolster intra-Africa trade, promote regional integration and contribute to the reduction of the trade finance gap

Agreed on the sidelines of the African Investment Forum in Rabat, Morocco, the US$150mn RPA facility is expected to provide guarantee cover of 50% and up to 75% for transactions in low-income countries (LICs) and transition states.

“TDB Group is delighted to strengthen its strategic partnership with the African Development Bank Group through tailored risk-sharing facilities aimed at scaling up trade finance,” remarked Wegoki Mugeni, TDB group chief operating officer in Nairobi. “This crucial support will help bridge the significant gaps in trade finance access as major international banks continue retreating from the continent.”

The facility is expected to support around US$1.8bn of trade over the next three years.

“We are delighted to work with TDB Group, a strong partner with extensive knowledge and network in Africa, on a shared ambition to support the region’s Trade,” commented AfDB director of the financial sector development department Attout Ahmed. “Supporting Trade in Africa is a key priority at the African Development Bank. Trade finance is an important driver of economic growth and is critical for cross-border trade particularly in emerging markets.”

Geraldine Sande, channel sales leader for Schneider Electric East Africa. (Image source: Schneider Electric East Africa)

Schneider Electric East Africa, a specialist in energy management and automation, has launched an eCommerce platform

Designed to cater to a diverse market, it includes tier 2 channels and represents a step towards modernising its procurement process and reinforces the company’s market presence. This is the assessment of Geraldine Sande, channel sales leader for Schneider Electric East Africa, who commented, “With the eCommerce platform, customers can access the required products locally, conveniently, faster and at their desired location without intermediary intervention.”

The portal lists a range of products and primarily targets end users in the residential space who would often have to travel far to a distributor, and commercial customers.

Sande explained that the platform also targets ‘specifiers’ – the individuals involved in projects and those who create bills of quantities (BOQs) or requests for quotations (RFQs) and need to know the available product options, as well as companies that require reliable supply chains for maintenance and operations.

“We noticed a gap in the market in terms of brand visibility in Kenya,” Sande continued. “Many people would ask if Schneider Electric was present in Kenya because we did not have a website (the website will go live in 2025) or any formal digital footprint. Instead, customers would find our partners on other Schneider Electric subsidiary platforms. The customer would also need to have a list of partners online and thus have insight about which solution is found from which channel partner.

“Given this, we felt there was a need to utilise another vehicle to be in front of the customer whenever someone is searching for a product and ensure the product is easily accessible, aside from going through our existing distribution channels.”

Sande stressed that the new platform is not designed to erode the market share of resellers and distributors but can instead bring potential benefits to their businesses.

“From the distributor's perspective, the platform will benefit them by increasing their sell-out. Distributors often hold a lot of stock, and the e-commerce platform provides them with another avenue to reach customers they were not previously tapping into. This represents an incremental business opportunity for our distributors,” concludes Sande.