The African Export-Import Bank (Afreximbank) has approved a US$10 billion Gulf Crisis Response Programme (GCRP) to insulate African and Caribbean economies, financial institutions and corporates from the impact of the ongoing Gulf crisis.
The conflict, which escalated on Feb. 28, has sent shockwaves through the global economy, with African and Caribbean economies bearing the brunt of the impact.
Given the significance of the Gulf region as a primary global source of oil, liquid nitrogen gas (LNG), fertilisers — as well as the critical role of the Strait of Hormuz — the outbreak has triggered wider repercussions at a global scale, adversely affecting African and CARICOM economies.
These impacts specifically affect nations that heavily rely on fuel, fertiliser, and food imports, alongside those exposed to Gulf shipping corridors. Additionally, it has disrupted investment, tourism and remittance inflows.
GCRP is designed to sustain essential imports — including fuel, LNG, food, fertiliser, and pharmaceuticals — by providing vital short-term foreign exchange (FX) and liquidity to support vulnerable member states.
It further aims to empower African energy and minerals exporters to capitalise on elevated prices and rerouted trade flows by scaling productive capacity in strategic commodities, through pre-export finance, working capital, and inventory financing.
Additionally, it provides short-term relief to African and Caribbean member states whose tourism and aviation industries have been adversely impacted by the crisis.
The programme is also designed to build the medium to long-term resilience of African and Caribbean economies against future shocks by scaling productive capacities for producers and exporters of energy, minerals while accelerating the completion of critical energy, port, and logistics infrastructure projects in African and Caribbean member states, delayed by the conflict.
Commenting on the facility, launched on March 31, George Elombi, president and chairman of the board of directors at Afreximbank said the crisis response programme is in tune with Afreximbank’s DNA.
“We understand how our economies work and the pain points associated with these transitory crises,” Elombi said.
He said the programme will support African countries in adjusting smoothly to the crisis while strengthening their resilience to future shocks through interventions that transform the structure of their economies.
The GCRP builds on a series of timely emergency interventions introduced by Afreximbank in recent years, which have helped to cushion most economies from the impact of recent shocks such as the commodity shock of 2015/16, the COVID-19 Pandemic of 2020/2021 and the Ukraine crisis of 2023/24.
