Under the framework of the MoU, signed by Abderahmane Berthé, AFRAA’s Secretary General, and Kanayo Awani, Executive Vice President, Intra-African Trade Bank, at Afreximbank, AFRAA and Afreximbank will coordinate activities, joint projects and programmes, exchange of information and data, and best practices to facilitate the achievement of shared objectives.

The key areas of collaboration include: 

1. Aviation safety and security
2. Environmental sustainability initiatives 
3. Air transport liberalisation – implementation of SAATM Joint Prioritised Action Plan
4. Economic sustainability of air transport – cost reduction, taxes and charges
5. Airline consolidation
6. Human capital development and capacity building
7. Facilitation of trade, business and tourism
8. Exchange of statistical data, information and best practices

Speaking at the signing ceremony, Mr. Berthé stated: “AFRAA and Afreximbank share a common goal to support a sustainable air transport system in Africa and thereby effectively contribute to the continent’s socio-economic development, trade and integration. Signing this MoU will facilitate the mobilization of necessary financial resources to undertake projects that will benefit African airlines. 

“Traction on collaborative actions is on-course. For the first time in Africa, trials for the free routing flights became a reality on 02 November 2023, thanks to the funding by Afreximbank and technical support by aviation experts. Flights ET935 and KQ 508 operated safely outside the existing routes, directly from Addis Ababa to Abidjan and Nairobi to Accra, respectively. Implementing the Free Route Airspace (FRA) will annually bring significant cost savings to airlines, shorten travel times for passengers and put less CO2 emissions into the environment. The trials, which started in November 2023, will continue to provide critical data to accelerate the FRA implementation in the entire African Airspace, improving air navigation efficiency,” added Mr. Berthé.

Ms. Awani noted that AFRAA and Afreximbank shared a common goal of promoting the development of a safe, reliable and environmentally sustainable air transport system in Africa in order to effectively contribute to the continent’s socio-economic development, trade and integration. She welcomed the MoU and expressed the Bank’s pleasure at the successful free routing trials, saying that implementation of FRA in Africa will contribute towards ensuring an efficient aviation market to support intra-African trade and tourism which was critical to the full realisation of the objectives of the AfCFTA.

Signed on behalf of the two institutions by Kanayo Awani, Executive Vice President, Intra-African Trade Bank, Afreximbank, and Calixte Tabangoli, Chief Executive Officer, BPC, the facility will enable BPC to expand its factoring activities by engaging in domestic and cross-border factoring.

The facility builds on a strong partnership that has existed between Afreximbank and BPC for more than five years which has seen them collaborating in a series of initiatives aimed at supporting factoring. These have included facilitating the adoption of a factoring law in the Republic of Congo with the objective of creating an enabling legal and regulatory environment for the growth of factoring as an alternative method of financing for SMEs.

Afreximbank recognises factoring as an important tool for expanding and facilitating African trade, particularly for SMEs. As a member of the Africa Chapter of the FCI, the largest representative body for the factoring industry, Afreximbank has been working with local banks in its member states to seize the opportunities found within the factoring industry while educating and providing support to ensure that world class standards are established and replicated in Africa’s factoring industry, especially as trade under the African Continental Free Trade Area agreement is taking shape.

Mr. Calixte Tabangoli, Chief Executive Officer, Banque Postale du Congo commented: “A few years ago, no one could have imagined that we could accomplish what we did today – becoming the leading factoring business in the Republic of Congo. We do not take this position for granted. As I always say, becoming the number one is difficult, but maintaining the number one position is more difficult. That is the reason why our strategic development plan 2023-2025 has concrete steps for BPC towards becoming the first Congolese Banking Group, with a factoring subsidiary. We are ready to take factoring to a fundamentally new direction. That said, we will need more support from the Bank, and do not be surprised to see us again”.

Mrs. Kanayo Awani, Executive Vice President, Intra-African Trade Bank, commented:

“The significance of this transaction is not lost on us at Afreximbank, given the strong partnership we have developed with Banque Postale over the years in support of factoring. This partnership has yielded positive results, including the adoption of the Afreximbank Factoring Model Law by the Republic of Congo in 2021 and the sensitisation and awareness campaigns conducted by our two institutions which have helped bring factoring to the fore as a major alternative to trade finance in the Republic of Congo. 

We are confident that this support will enable Banque Postale to capitalise and strengthen its factoring business and allow it to provide adequate support to those SMEs in Congo that have limited access to bank financing. In line with our strategic plan, Afreximbank remains fully committed to supporting Banque Postale as it advances its mission to promote factoring in Congo and the Central Africa Region.”