Egypt-based conglomerate, Orascom Investment Holding’s (OIH) has signed a facility agreement with African Export-Import Bank (Afreximbank) to boost its expansion drive across Africa.
Orascom Investment intends to make inroads into Nigeria, Rwanda, Togo, Eretria and Sao Tome to explore business and investment opportunities within these various African countries.
The $170 million facility agreement forms part of Afreximbank’s framework of Intra-African Investment Finance Facility. The program was initiated to promote intra-African investments and export manufacturing.
While commending Afreximbank for the swift transaction, the Chairman of Orascom Investment Holdings, Naguib Sawiris said progress will only be made in Africa if intra-African trade and investment growth were realised, and it’s up to Africans to achieve the objective.
Benefit of Afreximbank’s deal with Orascom Investment
Afreximbank President, Benedict Oramah stated the facility agreement would support Orascom’s targeted investments across Africa, increase their production capacity and produce higher quality exports through better value addition, especially in the agro-processing sector.
Adding that the facility would complement ongoing macroeconomic and safety net reforms in Egypt, which seek to foster sector-specific economic growth, especially in strategic sectors with a proven record of creating jobs and reducing poverty, Guardian reported.
Oramah also believes the deal will assist Afreximbank to expand its operations in the regional and Egyptian markets, as well as create a formidable alliance with Orascom Investment.
“Our collaboration opens the potential for our two institutions to strengthen their relationship and mutual cooperation in order to make significant contributions towards unlocking the full potentials of intra-African investment,” he added.
Orascom Investment Holding
Orascom Investment Holding S.A.E. operates in the GSM, media and technology, and cable businesses primarily in Egypt, North Korea, Lebanon, Pakistan, other North Africa, and the Middle East. The company provides mobile telecommunication services; and direct broadband and high-speed connectivity to telecom operators, Internet service providers, and corporations through submarine fiber optic cables. The company also designs, constructs or manages, operates, and maintains power plants with various sources, as well as distribution networks.