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Afreximbank expands support for African trade with new multi million dollar commitments at IATF2021

Afreximbank

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Chuks Udo Okonta

African Export-Import Bank (Afreximbank) on 18 November 2021 in Durban, South Africa, further consolidated its position as a leader in funding the development of trade infrastructure across Africa with the signing of four major business transactions on Day Four of the Intra-African Trade Fair 2021 (IATF2021).

In a transaction with Fidelity Bank, Afreximbank agreed to a US$10 million facility to Fidelity Bank to enable it finance trade and trade-related transactions across the continent. Proposed as a one-year revolving facility, with funds being utilised for short-term trade transactions on a case-by-case basis, the facility will be applied to projects, such as eligible exports, value-adding exports and eligible imports, in critical sectors, such as manufacturing, agriculture, power and energy.

Afreximbank also entered into a Memorandum of Understanding with Bestaf Exploration and Production Ltd, for US$1 billion to be used for the development of assets and requisite facilities to monetise the gas in OML 86 and 88 through a financial and technical service agreement with the Nigerian National Petroleum Corporation.

In a third signing, Afreximbank agreed to issue a line of credit to Senegal’s Banque National de Developpement Economique as part of efforts to promote factoring across Africa. The facility supports Afreximbank’s factoring strategy which is structured around supporting financial intervention, legal and regulatory frameworks, awareness and capacity building, services and the development and maintenance of strategic partnerships.

Organised by Afreximbank in collaboration with the African Union and the AfCFTA Secretariat, the seven-day IATF2021 is providing a platform to promote trade under the AfCFTA, and features over 6,000 buyers, sellers, and other stakeholders participating to share trade, investment and market information as well as trade finance and trade facilitation solutions designed to support intra-African trade and Africa’s economic integration. IATF2021 ends on 21 November 2021.

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