Afreximbank Commits GHS140 Billion for Gulf Crisis Response

Afreximbank's Board of Directors has approved a GHS140 billion (USD10 billion) Gulf Crisis Response Programme (GCRP). This program aims to protect economies in Africa and the Caribbean. It will help them against problems caused by the ongoing Middle East conflict.

Key economic issues include disruptions to oil, Liquid Natural Gas, and fertiliser supplies. The conflict also affects shipping through the Strait of Hormuz. This has hurt nations that import these items and those exposed to Gulf shipping. Tourism, investment, and money sent home by workers are also impacted.

The GCRP will help in several ways. It will provide foreign exchange to keep essential imports coming in. These include fuel, food, and medicines. It will also help African energy and mineral exporters sell more goods. This means providing money for pre-export, working capital, and inventory needs. The program will also give short-term help to tourism and aviation sectors that have been damaged.

Further, the program aims to build long-term strength for these economies. This means increasing production for energy and mineral exports. It will also help finish critical infrastructure projects like energy, port, and logistics facilities.

Afreximbank has run similar programs before. These include responses to the 2015/16 commodity shock, the COVID-19 pandemic, and the Ukraine crisis. For the Ukraine crisis, the bank used a GHS546 billion (USD39 billion) program. This helped African countries get important goods and liquidity.

Afreximbank will also work with the UN Economic Commission for Africa, the African Union Commission, and CARICOM. This partnership will help coordinate efforts on energy security, trade, and supply chain improvements.