The total assets of the African Export-Import Bank (Afreximbank) have surged more than ten-fold from about half a billion dollars in 2004 to over $5 billion in 2014, "despite challenges at the early part of my Presidency and episodic macroeconomic shocks thereafter", Jean-Louis Ekra, outgoing President of the Bank, said today in Lusaka. In his report on the Bank's activities delivered during the 22nd Annual General Meeting of Shareholders of the Bank, Ekra, whose tenure as President of the Bank ends this year, said that loans and advances consistently accounted for more than 80 per cent of the total assets during the period. "Unlike many other multilateral development banks, your Bank deliberately maintained very high loan-to-total assets ratio, consistent with expectations of its shareholders," he said. "Net earnings grew five-fold from $20 million in 2004 to $104 million in 2014. Sources of the earnings became more diversified, with advisory fees accounting for more than 25 per cent of total revenues during the period." Ekra said the strong earnings performance ensured the consistent payment of dividends to shareholders, with payment ratio at over 22 per cent, and that, except for a few years, non-performing loans ratio remained generally below 2 per cent. He added that with strong support of shareholders in its on-going capital increase exercise, the Bank's equity capital funds was now at just under $1.3 billion, with callable capital standing at just under $400 million, bringing total actual and contingent equity funds to just under $2 billion dollars. "Based on written commitments received from shareholders, the Bank expects to receive significant additional equity payments before year end," he added. Turning to the appointment of his successor, Ekra expressed satisfaction that the process had proceeded smoothly, as a result of the changes to the Charter implemented in light of the tumultuous process around his own appointment. "My advice is that you owe it to your great institution, to finalize the process without rancour. My advice to any new management coming after me is that it should not lose sight of the urgency to transform Africa's export sector. The Bank should not lose focus on this important area at this time; the journey is difficult but we must always remember that ‘when the root is deep, the fruit is sweet'". Earlier, Marcelin Agaya, outgoing Chairman of the Annual General Meeting, expressed appreciation to Ekra for his "exceptional work and management of human resources" that enabled the Bank to achieve such resounding success under his tenure. Agaya noted that despite the difficult economic conditions marked by the drops in the prices of commodities and the Ebola outbreak, the Bank was able to continue its operations and activities and to achieve positive financial results. Loan approvals in the financial, agriculture and energy were $1.7 billion, $478.8 million and $962.6 million respectively, he said. On the appointment of a new President for the Bank, Agaya announced that during its meeting on 21 March, the Bank's Executive Committee adopted the report of its ad hoc selection committee which recommended Dr. Benedict Oramah as the most qualified of the three top candidates who applied for the appointment. In welcome remarks, Alexander Chikwanda, Minister of Finance of Zambia, had thanked the shareholders for holding the Annual General Meeting in Lusaka. He commended Afreximbank for its support to Zambia. The Annual General Meeting of Shareholders was preceded by three days of side events, including seminars and meeting of the Advisory Group, an investment forum and a trade exhibition. Source: New Business Ethiopia
