Afreximbank shields country with N$167 billion

The African Export-Import Bank (Afreximbank) has made N$167.3 billion (US$10 billion) available to all member states, including Namibia.

The initiative, known as the Gulf Crisis Response Programme (GCRP), is set to help African countries deal with the effects of the war in the Middle East that has pushed food, transport and oil prices up.

Namibia remains a net importer of several critical commodities that have been directly impacted by the disruption of the Strait of Hormuz.

With the GCRP now active, Namibian commercial banks and corporates can tap into a specialised pool of liquidity to ensure that the supply of fuel, liquid nitrogen gas and fertilisers remains uninterrupted.

Afreximbank president George Elombi says the programme is not just a temporary fix.

“The programme will support African countries in adjusting smoothly while strengthening their resilience to future shocks through interventions that transform the structure of their economies,” says Elombi.

As of going to print, Brent crude had fallen nearly 15% to between US$94 to US$95 per barrel.

This sharp decline follows news of a two-week ceasefire between the United States (US) and Iran, which raised hopes for reduced supply disruptions.

The US and Iran reached an agreement to open the Strait of Hormuz after president Donald Trump threatened to kill “a whole civilization” on Tuesday, referring to bombing Iran.

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