In a major commitment to strengthen regional development across Africa, the African Export-Import Bank (Afreximbank) has pledged $2 billion to support sub-sovereign governments in accessing trade and investment financing.
The announcement was made by Prof. Benedict Oramah, President and Chairman of the Board of Directors of Afreximbank, during his opening remarks at the 5th African Sub-Sovereign Governments Network (AfSNET) Business Engagement Programme in Algiers, Algeria.
Addressing a gathering of governors, mayors, premiers, and leaders from sub-national governments across Africa and the Caribbean, Oramah emphasized the critical role of local leadership in Africa’s economic transformation. “Your participation here sends a powerful message: local leadership is fundamental to Africa’s transformation,” he said.
Oramah highlighted that AfSNET, launched in 2021, was designed to amplify the voices of sub-sovereign governments in shaping economic policy, unlocking investment opportunities, and accelerating trade across the continent. “Development must be decentralised, originating where the needs are most pronounced in our cities, provinces, counties, and regions, and cascading outward to influence national and continental progress,” he said.
The $2 billion pledge aims to provide flexible financing solutions tailored to the needs of sub-sovereign governments. Oramah cited several examples of projects already benefiting from Afreximbank support. In Ogun State, Nigeria, funding has been allocated to industrial parks and Special Economic Zones, while in Cross River State, deep seaport development has been supported. In South Africa, projects like the Nyanza Light Metals initiative in KwaZulu-Natal have been prepared for bankability.
“Equally impactful is what we achieved in Kisumu, Kenya, during last year’s conference with the Med Aditus Pharmaceuticals project,” Oramah said. “We supported feasibility and bankability studies for a $40 million manufacturing plan, Africa’s first blockchain-enabled, continuous manufacturing facility for essential medicines. It is projected to produce approximately two billion tablets and capsules annually, improving access to affordable, high-quality medicines across the Great Lakes region.”
The AfSNET platform has also been instrumental in fostering cross-border partnerships among neighboring regions, providing access to financing, educational exchanges, investment readiness support, and critical market intelligence. “It serves as a bridge connecting local leaders directly with investors, development partners, and trade opportunities,” Oramah said.
He also underscored the importance of knowledge exchange and capacity-building. In July 2025, Afreximbank, in partnership with the Forum of State Investment Promotion Agencies of Nigeria (FOSIPA), conducted an Investment Promotion Training Workshop in Abuja, training over 60 delegates from state governments in project structuring, public-private partnership frameworks, and effective investor engagement.
A similar session in Kisumu, Kenya, welcomed 210 delegates, focusing on project preparation and investor readiness.
Highlighting Algeria as a model for decentralized development, Oramah noted that the country has steadily moved away from centralized planning since the 1980s, resulting in one of the lowest inequality indices in Africa. He urged sub-sovereign leaders to learn from Algeria’s experience and forge partnerships to replicate similar successes in their regions.
“Algeria represents an enormous opportunity for sub-sovereign cooperation,” he said. “With its rich natural resources, rapidly expanding renewable energy sector, modernizing industrial base, and strategic location at the heart of the Maghreb, Algeria is uniquely placed to be a continental trade hub under the AfCFTA.
Imagine the synergies if Algerian ports became gateways not only for North African trade but also for goods from West, Central, and Southern Africa reaching Mediterranean and European markets. Such opportunities are exactly what AfSNET is designed to unlock.”
Oramah concluded by emphasizing the importance of step-by-step, deliberate action in achieving Africa’s economic transformation. “As the Algerian proverb wisely states, ‘He who wants to make a mountain from a molehill will have to gather the stones first.’ Step by step, through deliberate and purposeful action, we will realize our vision. AfSNET provides us with the framework, AfCFTA offers the marketplace, and our united will propel us forward.”
The AfSNET 2025 conference in Algiers, which brought together over 20 Algerian Walis and leaders from across Africa, served as a platform for sharing development aspirations, forging partnerships, and unlocking investment opportunities that will drive sustainable growth at the local and continental levels.
Afreximbank also confirmed that the 6th AfSNET Investment Conference will be hosted by Cross River State, Nigeria, in 2026.
