Eximbanks need to be innovative and nimble to meet the evolving economic and market forces, especially in emerging or underserved markets. This means keeping their fingers on the changing needs of clients through a diagnostic approach to understand market gaps and adjust their product offering to meet these needs.
That’s why the African Export-Import Bank (Afreximbank) engaged Momentus (formerly IFCL) for guidance in how to expand its product line to include a range of guarantees. Our initial analysis identified guarantee products that could better leverage existing capital and create effective incentives to undertake analogous unfunded guarantees for a number of funded loan products, including trade finance, SME finance, working capital, and project finance. We also developed an Export Credit Agencies (ECA) programme.
In pursuit of the project’s goals, we led a feasibility analysis, in-depth market assessment, and reviewed internal policies, procedures, and capacity. To develop a detailed business plan, we assessed the legal and regulatory landscape, and developed operational procedures and sample documentation required for key product areas. To ensure a successful execution, we created and provided staff training material to build capacity in implementing the new business plan.