This archive report was first published on 28 September 2019.
The African Export-Import Bank (Afrexim) has taken a significant step in expanding its presence in East Africa with the signing of a deal with Uganda to open its East African branch office in Kampala.
On September 28, 2019, President Yoweri Museveni and Afrexim's President, Benedict Oramah, signed the agreement, which will see the bank establish its fifth branch in the region, after Cairo, Abuja, Abidjan, and Harare.
The Kampala branch will serve 11 countries, including Kenya, Uganda, Sudan, Eritrea, Djibouti, Ethiopia, South Sudan, Tanzania, Rwanda, Burundi, and Comoros.
According to Afrexim's President, Benedict Oramah, the establishment of the East Africa branch will deepen the bank's involvement with the region's institutions.
The agreement also guarantees Afrexim and its senior officials diplomatic immunity in dealings in Uganda.
Afrexim is in talks to get Uganda's National Social Security Fund (NSSF) to join its institutional investors, which include Rwanda's social security board.
Richard Byarugaba, the NSSF managing director, said, "Among the things we are considering is due diligence on whether we can invest money in this institution."
However, Ugandan laws currently do not allow NSSF to invest money in institutions domiciled outside of East Africa, a restriction that has sometimes created challenges for the fund to diversify its investment portfolio.
But Afrexim seems to be an attractive venture for the bond markets, having recently raised $3.9 billion instead of the $500 million that had been sought.
Its investment portfolio in East Africa includes a $2 billion loan to Kenya Airways, an undisclosed amount loaned to Tanzania for the construction of the standard gauge railway, and $155 million to Rwanda for the construction of the Kigali Convention Centre and the Radisson Blu Hotel.
