Eritrea finally joins Afrexim bank to become the 48th member state

Eritrea has finally joined the African Export-Import Bank (Afreximbank) effectively becoming the 48th African country to do so.

Afreximbank announced on Tuesday, that the East African country had become a participating state or a shareholder in the continental multilateral trade finance institution after issuing an instrument of acceptance and accession.

In the instrument of accession, signed on Monday by Berhane Habtemariam, the Minister of Finance, and delivered to Afreximbank by the ministry, Eritrea declared its acceptance and accession to the “Agreement for the Establishment of the Bank” and committed to taking all necessary steps for the ratification of that Agreement.

Eritrea’s membership to Afreximbank follows a recent visit to Asmara by a delegation led by bank president Dr. Benedict Oramah during which Eritrean president Isaias Afwerki expressed willingness to join Afreximbank as a Member State.

“Eritrea believes in working with financial institutions that can help in transforming the African economy,” said Afwerki.

Eritrea now stands to enjoy and access diverse range of products and facilities offered by Afreximbank, including trade finance facilities, project finance services, trade information and advisory services, support in the development of a local content policy and assistance in developing and implementing industrial parks and special economic zones.

Under the terms of the agreement for the establishment of the bank, which was signed by participating states in Abidjan on May 8, 1993, countries that did not sign on before it entered into force are required to first issue an instrument of acceptance and accession and then proceed to formally ratify the agreement in order to fully activate their membership of the bank.

Eritrea's membership comes in the wake of the recent acquisition of shares in the bank by South Africa, which has named the Export Credit Insurance Corporation of South Africa as its designated investor.