Libya Joins Afreximbank as 53rd Member State: Boosting Intra-African Trade and Economic Integration

His Excellency Dr. Khaled Al-Mabrouk Abdullah, Libya's Minister of Finance, signed the accession document, which outlines cooperative efforts between Libya and Afreximbank.

The State of Libya has officially acceded to the African Export-Import Bank (Afreximbank) Establishment Agreement, becoming the 53rd member state. This milestone signifies Libya’s commitment to advancing its economic reconstruction, trade, and regional integration, furthering the vision of a connected and prosperous Africa.

His Excellency Dr. Khaled Al-Mabrouk Abdullah, Libya's Minister of Finance, signed the accession document, which outlines cooperative efforts between Libya and Afreximbank. The agreement focuses on trade facilitation, infrastructure development, and financial assistance to bolster Libya’s economic diversification and reconstruction.

"This partnership will not only provide vital financial and technical support to Libya but also enhance the country’s role in intra-African trade," stated Dr. Al-Mabrouk. He emphasized Libya’s potential to reestablish itself as a key trading hub in the region.

Under the agreement, several high-impact projects have been identified, including:

Development of Misurata Free Zone: Aimed at transforming Libya into a logistics and trade hub in North Africa.

Construction of the Libya-Chad-Niger Road: This infrastructure project is expected to significantly enhance intra-African trade and regional connectivity.

Support for BSIC Bank Expansion: Afreximbank will provide technical and financial assistance to the Sahel-Saharan Bank for Investment and Trade (BSIC) to strengthen its operations in East Africa.

Capacity Building for Libyan Exporters: Training programs will help exporters access trade finance and expand into African markets, enabling Libya to maximize its trade potential across the continent.

Enhanced Trade Opportunities

Libya's economy, valued at $50.49 billion in 2023 and ranking as the 12th largest in Africa, has been underperforming in terms of intra-African trade, which accounts for less than 10% of its total trade volume. By joining Afreximbank, Libya gains access to a suite of funded and unfunded financial products, trade-enabling services, and technical expertise.

“This partnership represents a unique opportunity for Libya to enhance its trade with African nations and shift its economic structure towards diversification and sustainability,” said Professor Benedict Oramah, President and Chairman of the Board of Directors of Afreximbank.

Libya's Vision for Integration and Growth

The partnership is seen as a gateway for Libya to reclaim its historical role in African trade. With Afreximbank’s support, Libya is poised to invest in trade-enabling infrastructure, enhance its export capabilities, and integrate into the continent's economic ecosystem.

Professor Oramah expressed optimism about the collaboration: “Libya’s accession extends Afreximbank’s reach and relevance across Africa. Libya’s historical ties and strategic position make it a crucial player in advancing the continent’s trade and economic goals. Together, we aim to transform Libya into a vital component of Africa’s economic architecture.”

Looking Ahead

Libya's formal membership paves the way for the ratification of the Afreximbank Establishment Agreement, completing the accession process. This step aligns with the broader agenda of the African Continental Free Trade Area (AfCFTA), which seeks to deepen economic integration across the continent.

The partnership between Libya and Afreximbank underscores the bank’s commitment to fostering sustainable development and economic resilience in Africa, with Libya emerging as a key beneficiary and contributor to this transformative journey.