Mozambique will join the African Export and Import Bank (Afreximbank), according to a statement issued at the end of a Council of Ministers meeting held on Tuesday in Maputo.
The statement said that the Council of Ministers authorised the Minister of Finance to sign the necessary documentation for the accession process.
The Afreximbank was created by the African Development Bank in 1993 and has a registered capital of over US$11 billion.
The chairman of the bank told African Union heads of state and government last July that the bank will set up a US$1 billion fund to support the implementation of the free trade agreement in Africa.
The US$1 billion fund is intended to support countries in adjusting to the sudden and significant loss of customs revenue, which is expected to be reduced and, in some cases, eliminated.
“This fund will help countries accelerate the ratification of the African Continental Free Trade Agreement [AfCFTA],” said Benedict Oramah, adding that by starting the operational phase of the agreement “this move is now unstoppable.” (Macauhub)