Afreximbank and the Islamic Corporation for the Insurance of Investment and Export Credit (ICIEC) have announced the signing of a memorandum of understanding (MoU) to strengthen their cooperation in promoting trade and investment flows across African and Arab countries.

Development Diaries reports that the MoU was signed in Cairo, Egypt, by the Director, Guarantees and Specialised Finance at Afreximbank, Kofi Addo, and the Director of the Business Development Department at ICIEC, Yasser Alaki.

Challenges to trade between African and Arab countries include a lack of information on trade opportunities, inadequate infrastructure, limited access to finance, and security threats.

It is also understood that African countries face issues with diversified production structures, the informal economy, and high trade costs, while Arab countries may have concerns about debt sustainability and potential currency appreciation due to increased investment.

This partnership, it is understood, will provide a robust framework for collaboration, enabling the two parties to harmonise their efforts in supporting African-Arab businesses seeking regional market opportunities while facilitating practical information exchange in areas where access to trade and investment intelligence has been limited.

Commenting on the MoU, the Vice President of Global Trade Bank at Afreximbank Haytham ElMaayergi, said, ‘This MoU is a testament to the long-standing relationship between Afreximbank and ICIEC aimed at deepening Arab-Africa trade.

‘It is expected to generate mutually beneficial and meaningful outcomes in areas such as market development, risk-sharing, digital innovation, and capacity building. Both institutions look forward to advancing our joint initiatives, including the achievement of the strategic objectives of the Arab African Trade Bridge’.

For his part, Alaki said the partnership marked a milestone in the Africa-Arab shared commitment to inclusive and sustainable trade and investment.

‘By combining ICIEC’s risk-mitigation expertise with Afreximbank’s expansive financing and advisory platform, we are enabling businesses to move from ambition to action’, he added.

‘Together, we will unlock new opportunities and deliver strategic value-add to trade flows that benefit our member countries and private-sector partners’.

Areas of cooperation covered in the MoU include risk-sharing mechanisms, a structured exchange of information to strengthen the outreach and insight of both institutions, support for Afreximbank’s digital platforms, and access for both partners to TRADAR Club offerings, such as TRADAR Intelligence (TIP) and TRADAR Regulations (TRIP);.

Others are joint capacity-building and advisory services, collaborative work in marketing, promotion and product development; and deployment of the AfrexInsure initiative to maximise risk mitigation and trade-finance tools.