Amr Kamel, Executive Vice President for Business Development and Corporate Banking, African Export-Import Bank (Afreximbank) has lauded a $100 million master risk participation agreement the bank signed with CDC Group Plc.
The agreement is to support Afreximbank’s Trade Facilitation Programme and was signed in Casablanca, Morocco. Under the agreement, the CDC Group which is a United Kingdom development finance institution will provide unfunded risk participation to Afreximbank as the Bank provides trade finance products.
The trade finance products include trade confirmation services; trade confirmation guarantee; and irrevocable reimbursement undertakings.
According to Amr, the agreement will support Afreximbank’s trade confirmation services under which the bank provides confirmation lines to African financial institutions to support their trade businesses and increase capacity to undertake trade finance transactions.
Nairametrics had reported that Afreximbank partners the African Development Bank (AfDB) to provide a $500,000 grant scheme through the AfDB’s African Private Sector Assistance (FAPA) programme.
The grant would enable the advancement of 20 emerging factoring firms on the continent and increase their financing opportunities.
The agreement was signed on behalf of Afreximbank by the Managing Director of Intra-African Trade, Kanayo Awani, while the Senior Director, Nigeria Country Office, Ebrima FAAL, signed for the AFDB.
The signing was in the presence of Chargé d’Affaires, Embassy of Austria in Nigeria, Elfriede Geisler, and Ambassador of Japan to Nigeria, Yutaka Kikuta, who represented the FAPA donor countries.
About CDC and Afreximbank
CDC Group plc is a development finance institution owned by the UK Government. The Department for International Development is responsible for CDC, with shareholder duties managed by the Shareholder Executive.
Afreximbank, on the other hand, is the foremost pan-African multilateral financial institution devoted to financing and promoting intra and inter 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.