The African Export-Import Bank (Afreximbank) and several leading business entities from across the continent have sealed financing and other agreements valued in excess of one billion dollars as at the third day of the ongoing Intra-African Trade Fair (IATF2023).
The bank also signed a US$150-million trade finance facility agreement with United Bank for Africa (UBA) Plc under the Ukraine Crisis Adjustment Trade Financing Programme for Africa, to be utilized to finance trade and trade-related transactions in support of UBA clients to facilitate increased financing of trade businesses in various sectors of the Nigerian economy to mitigate the adverse effects of the Russia-Ukraine crisis.
The deal with the UBA, which was sealed by Afreximbank’s Executive Vice President, Finance, Administration and Banking Services, Denys Denya, and Managing Director of UBA Plc, Oliver Alawuba, the facility, is expected to enhance confidence in the settlement of international trade transactions for strategic imports.
This is even as another facility pact for S$10 million, was signed by Director, Trade Finance, of the export-import finance bank, Gwen Mwaba, and Deputy Managing Director, FDH Bank Malawi, George Chitera, to support trade finance in Malawi.
At the event, under a facility agreement with Banque Commerciale du Burundi (BANCOBU), Afreximbank will provide US$55-million trade facilitation limits to BANCOBU to support importation of essential commodities, such as petroleum products, which are important for the Burundi’s trade and manufacturing sector.
Afreximbank also signed an agreement under which it will provide a US$40-million AFTRAF facility to Banque de Credit de Bujumbura (BCB) to support trade finance in Burundi.
According to a news report on the sundry finance pacts sealed by the export-import bank circulated by the African Press Organisation (APO) Group on behalf of the bank, another term Sheet for a US$141-million intra-African investment finance facility was signed with Exodus and Company just as another term sheet for an EUR140-million intra-African trade investment facility was signed with Ora SPV/Vista Group for funds to be deployed in Burkina Faso.
The bank also signed a term sheet with ADI SPV/Vista Bank for a EUR113-million facility to be deployed in Burkina Faso.
Another term sheet signed during the day was with Lilium Gold for a US$75-million senior debt facility for a strategic investment that will significantly enhance Burkina Faso’s mining infrastructure through the acquisition of the Boungou and Wahgnion gold mines.
Similarly, the bank also signed a term sheet with Sapro Mayoko for a US$96-million iron ore mine development facility in Congo even as a memorandum of understanding with the International Centre for Regional Integration and Trade Research (ICRITR) was signed.
Earlier on the second day of the trade fair, Afreximbank had signed a mandate letter to provide capital raise financial advisory services to the Anambra State Government of Nigeria for an estimated US$200-million facility to support the development of three major projects in the state, covering the Ikenga Mixed-Use Industrial City Project, the Anambra Export Emporium and the Akwaihedi Unubi Uga Automotive Industrial Park.
The Bank also signed an agreement to provide the state government with financial advisory services for the development of operational and governance framework for the Anambra Diaspora Fund, including capital raise financial advisory services for the Anambra Intra-City Rail Master Plan project and the Anambra Diaspora Fund.
Afreximbank also signed an agreement with Central Africa Building Society (CABS), Zimbabwe’s largest building society, to provide a US$40 million line of credit to help build capacity among hundreds of small and medium enterprises (SMEs). The agreement is for three years and is aimed at fostering the growth of the SME sector by supporting productive sectors, such as agriculture, manufacturing and mining.
The bank signed a heads of terms agreement with Arise IIP for the implementation of African Quality Assurance Centres (AQAC) projects in Benin and Gabon. Under the heads of terms, Afreximbank will develop AQACs to offer conformity assessment services such as testing, inspection and certification services in Benin, Gabon and, possibly, other African countries in collaboration with Arise IIP within industrial parks developed by Arise to support park tenants and other industries outside to enable them meet local and export market requirements.
The bank also announced the conclusion of cooperation agreements with the Comoros National Investment Promotion Agency (ANPI – Invest in Comoros), the Kenya Private Sector Alliance (KEPSA) and the Kenya Association of Manufacturers (KAM), aimed at accelerating intra-African trade and investment.
The agreements, signed seek to deepen collaboration with the institutions through sharing of ideas, exchange of business-oriented information to facilitate trade and investment, business matchmaking, grants, training, technical assistance and capacity building, inter-institutional cooperation and other agreed activities.
They are intended to increase the impact of Afreximbank’s TRADAR Club, a member-driven network set up to empower international businesses and executives to transform trade and investments in Africa through trusted trade intelligence and advisory services.
