The African Export-Import Bank ( Afreximbank ) says it has signed a $100 million financing agreement with the Islamic Corporation for the Development of the Private sector ( ICD ) to promote SMEs in Shariah-compliant countries.
The facility being provided by ICD is for small and medium-sized enterprises ( SMEs ) in ICD-member countries. Mr Khaled Al Aboodi, Chief Executive Officer of ICD, revealed that the financing facility was a token in support of private sector businesses in ICD-member countries.The facility targeted at SMEs in the industrial, communication, technology, healthcare, construction and agricultural sectors.
Mr. Amr Kamel, Executive Vice President at Afreximbank, said,
“this facility will give a boost to our effort to implement our current strategy which prioritises intra-African trade, intra-African investments and export manufacturing of the labour intensive type.”
“It will also promote our knowledge in Islamic finance and provide us with additional maneuvering capacity in terms of product offerings to our clients. “
“We are delighted that ICD has chosen to partner with us in the pursuit of Africa’s trade development. This collaboration will contribute to the objective of fostering sustainable economic growth in the member countries of our two institutions leading to job creation, contribution to export and Islamic finance development among others.” He said.
ICD is a multilateral organisation and a member of the Islamic Development Bank ( IDB ) Group. The mandate of ICD is to support economic development and promote the development of the private sector in member countries through providing financing facilities and/or investments which are in accordance with the principles of Shari’ah.
Afreximbank, on the other hand, is the foremost pan-African multilateral financial institution devoted to financing and promoting intra- and extra-African trade. The bank was established in October 1993 by African governments, African private and institutional investors and non-African investors. The bank has its headquarters in Cairo. Afrexim recently obtained a $150 million loan from a consortium of Japanese banks.
