The African Export-Import Bank (Afreximbank) has sealed an agreement with the International Islamic Trade Finance Corporation (ITFC) to receive a $100 million credit facility in order to promote Arab-Africa trade and investments.
The signing, which took place in Egypt at the 2019 Investment for Africa Forum, had the President of Afreximbank, Prof. Benedict Oramah, and Chief Executive Officer of ITFC, Hani Sombol in attendance on behalf of the two organisations.
How the facility will be deployed: According to the agreement document as reported by Daily Trust, the facility would help finance and de-risk trade flows between the Arab and Africa regions, thereby raising the level of trade, which currently stands at about $500 million.
Speaking on the deal, Afreximbank said the pact would help in leveraging other Arabian funds in support of Arab investments in Africa. The bank also said the facility was part of the Afreximbank/ITFC Arab-Africa Trade and Investment Promotion Programme launched two years ago to deepen the partnership between them.
Also present at the signing of the agreement in Egypt was the Egypt Prime Minister, Mostafa Madbouly, and Egypt’s Minister of Investment and International Cooperation, Dr Sahar Nasr.
[READ MORE: Afreximbank urges Nigeria, other African countries to take advantage of opportunities in AfCFTA]
What you should know: Afreximbank also recently signed an agreement to partner with South Africa-based Railway company, Thelo DB Proprietary Limited as reported by Nairametrics. The agreement, which will benefit Nigeria and other African countries, is for the purpose of developing, financing and operating railway projects in Africa.
The Memorandum of Understanding (MoU) was signed between the two organisations on the sidelines of the Africa Investment Forum. The terms of the MoU, include Afreximbank and Thelo DB partnering to support the modernisation and renovation of Africa’s railways in different countries. By doing so, the organisations aim to promote trade, investment and economic skills development.
