The bank’s assets grew 15% to $15 billion in 2018
Kampala, Uganda | ISAAC KHISA | Shareholders of Africa Import-Export Bank (Afreximbank) are set to earn $69million as dividends following record growth in profits in 2018. Last year, shareholders earned $57.53million.
The decision was reached during the Annual General Meeting of Shareholders (AGM) of the Bank that was held on June 22, in Moscow, Russia. The AGM also approved the Bank’s 2018 Annual Report which includes the 2018 Financial Statements.
In his report to the AGM, Benedict Oramah, the president of Afreximbank, said the Bank’s total revenues rose by 24% in 2018 to reach $806 million while the net income increased to $276 million, representing a 26% increase on the level in 2017.
The bank’s total assets, including contingent liabilities, went up by 15% from $13billion in 2017 to $15 billion in 2018.
The profit performance reflected strong growth in interest and fee income from diversified sources by geography and financial products.
He informed the shareholders that during its extra-ordinary session in Nouakchott in July 2018, the African Union Heads of State Summit had approved the accreditation of the Bank to the AU, allowing the AU to adopt most of the Bank’s flagship initiatives as continental initiatives.
That action would help to accelerate adoption of such initiatives at the national level, thereby improving the pace of implementation at lower cost.
Oramah explained that the accreditation was a privilege which was previously enjoyed only by the African Development Bank and the United Nations Economic Commission for Africa.
The end of the AGM marked the conclusion of the Bank’s 2019 Annual Meetings which started on June 20 with the seminar and meeting of the Advisory Group on Trade Finance and Export Development in Africa, declared open by Russian Foreign Minister Sergey Lavrov.
On June 21, Dimitri Medvedev, the chairman of the Government of the Russian Federation, had addressed the opening session of the AGM.
The AGM was held under the theme “Harnessing Emerging Partnerships in an Era of Rising Protectionism” and deliberated topics such as; How South-South trade can be a path to Africa’s integration into the global economy; Multilateralism in the current global economic order of protectionism; and the role of investing in Africa’s infrastructure in accelerating intra-African trade and economic development.
Highlights of AAM2019 include the launch of the Afreximbank Export Trading Company Strategy; and a half-day programme of activities dedicated to Russia–Africa investment cooperation. A number of trade agreements were also signed at the event including the Roscongress, Afreximbanks and Russia’s Centre’s cooperation agreement.
AAM2019 marked the second time Afreximbank Annual Meetings would take place outside Africa. The 2012 Annual Meetings were held in Beijing.
Kampala regional office
Meanwhile, the bank executives told The Independent that they are in the final negotiation with the Ugandan government to set up its regional office in Uganda.
Oramah said while the government passed a law granting them an opportunity to set up an outlet last year, it had mistakes that needed to be corrected prior to signing an agreement with the government to set up its office in Kampala.
Afreximbank ditched their plan to have the east African regional office in Nairobi for Kampala following long winding negotiations with the Kenyan government that did not seem to yield any positive result within the shortest time possible.
The bank’s other regional headquarters are in Abuja (Nigeria), Harare (Zimbabwe), Tunis (Tunisia) and Cairo (Egypt).
Started in 1993, Afreximbank shareholders are a mix of the public including Uganda and private entities divided into four classes consisting of African governments, central banks, regional and sub-regional institutions, private investors and financial institutions, as well as non-African financial institutions, export credit agencies and private investors.
Class “A” shareholders are African states, African central banks and African public institutions, including the African Development Bank, while Class “B” is made up of African financial institutions and African private investors.
Class “C” shares are held by non-African investors, mostly international banks and export credit agencies, including Standard Chartered Bank, HSBC, Citibank, China Exim Bank and Exim India.
Class “D” shares, a tier approved in December 2012, are fully paid value shares that can be held by any investor. SBM Securities, Mauritius, is currently the only investor in this class on behalf of holders of its depository receipts which are listed on the Stock Exchange of Mauritius.