Intra-Africa trade receives financial boost

Intra-Africa trade receives financial boostThe African Export-Import Bank (Afreximbank) has signed agreements to provide financing facilities totaling up to $1.11 billion to support African entities engaged in intra-African trade, including $1 billion to the African conglomerate Dangote Industries Limited.

The signing ceremonies were held as part of the activities marking the 24th Annual General Meeting of the Bank, in Kigali last week, in line with the Bank’s strategy to facilitate the growth of intra-African trade.

A statement said the terms of the MoU with Dangote Industries provides for credit facilities, “which may be granted by Afreximbank to Dangote Industries Limited and its subsidiaries in an aggregate amount of up to one billion dollars”.

The MoU provides for collaboration between Afreximbank and Dangote Industries in respect to proposed funding of transactions, which could involve the provision of short and long-term liabilities for trade-related projects in Africa.

Under the deal, the utilization of the facility would boost intra-African trade volumes, enhance continental value chains and increase production and export of goods and services across Africa.

Another signing ceremony was a $100-million facility to Heirs Holdings Limited, a pan-African proprietary investment holding company, to support its cross border investment programme. Heirs Holdings has a portfolio of investments in key sectors in 20 African countries, including energy, financial services, real estate and hospitality.

Also signed was a facility agreement for a $10 million amortising term loan facility to the Development Bank of Rwanda Limited (BRD) to support the development of power and manufacturing projects in the country.

A note on the seven-year facility said that it would finance projects that were in line with Afreximbank’s strategy aimed at promoting industrialisation and export development and would contribute to an increase in Rwanda’s electricity generation and consumption, thereby enhancing the growth of the country’s manufacturing and export sectors.

Dr Benedict Oramah, the President of Afreximbank, signed the agreements on behalf of the Bank, while Aliko Dangote, President of Dangote Industries Limited; Tony Elumelu, Chairman of Heirs Holdings; and Alex Kanyankole, Chief Executive Officer of BRD, signed on behalf of their respective organisations.