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Afreximbank deploys $10 billion to cushion economies from a new global disruption
Cairo, Egypt | THE INDEPENDENT | Africa’s multilateral lender, African Export-Import Bank, has approved a $10 billion emergency facility to shield African and Caribbean economies from the fallout of escalating tensions in the Gulf, as policymakers race to contain a fresh wave of global economic disruption.
The lender’s board signed off on the Gulf Crisis Response Programme (GCRP), a sweeping intervention designed to stabilise currencies, sustain critical imports and support businesses exposed to supply chain shocks following the conflict between US and Israel against Iran, which intensified on Feb.28.
The crisis has rattled global markets, with African and Caribbean economies among the most exposed. The Gulf region remains a key supplier of oil, liquefied natural gas and fertilisers, while the Strait of Hormuz serves as a vital artery for global trade. Disruptions have driven up costs and constrained supply, particularly for countries reliant on fuel, food and fertiliser imports, as well as those dependent on shipping routes through the region.
Tourism, investment and remittance flows have also come under pressure, compounding vulnerabilities across several economies.
The GCRP aims to cushion these shocks by providing short-term foreign exchange and liquidity support to member states including Uganda, enabling them to maintain imports of essential goods including fuel, food, pharmaceuticals and fertilisers. The programme will also channel financing to energy and mineral exporters seeking to take advantage of higher global prices and shifting trade routes.
“This crisis response programme is in tune with our DNA. We understand how our economies work and the pain points associated with these transitory crises. The programme will support African countries in adjusting smoothly to the crisis while strengthening their resilience to future shocks through interventions that transform the structure of their economies,” said George Elombi, President and Chairman of the Board of Directors at Afreximbank. “I commend the Board of Directors of Afreximbank for their proactivity and fortitude in approving this intervention programme.”
The facility also targets sectors hit by declining travel demand, offering relief to tourism and aviation industries, while laying the groundwork for longer-term resilience. Planned measures include scaling productive capacity in energy and minerals, alongside accelerating delayed infrastructure projects in ports, logistics and energy systems.
Follows the Covid-19 path
The latest intervention builds on Afreximbank’s track record of crisis financing. During the COVID-19 pandemic and the Ukraine war, the bank deployed billions of dollars to stabilise economies and secure access to essential goods. Notably, its Ukraine Crisis Adjustment Trade Financing Programme disbursed $39 billion to help African countries manage trade disruptions and liquidity shortages.
That history underscores the bank’s role as a counter-cyclical financier at times of global stress, deploying capital to mitigate external shocks in economies with limited fiscal buffers.
Under the new programme, Afreximbank has already begun working with commercial banks and corporates to secure fuel, energy supplies, fertilisers and food imports disrupted by the prolonged crisis.
Beyond financing, the lender is coordinating a broader regional response with institutions including the United Nations Economic Commission for Africa, the African Union Commission, the African Continental Free Trade Area Secretariat and the Caribbean Community Secretariat. The collaboration is expected to focus on energy security, trade resilience and supply chain diversification.
With global trade routes under strain and commodity markets volatile, the success of the programme may test how effectively regional institutions can respond to external shocks — and whether such interventions can translate into lasting structural change.
