The African Export-Import Bank (Afreximbank) says it has signed a cooperation agreement with the Export-Import Bank of China for one billion dollars to construct industrial parks and special economic zones in Africa.
A statement by Afreximbank on Monday said that the agreement, tagged “China-Africa Investment and Industrialisation Programme”, was signed at the just concluded 23rd Annual General Meeting of Afreximbank in Mahe, Seychelles.
The loan agreement, signed by Afreximbank President Dr Benedict Oramah and Lui Liang, President of Export-Import Bank of China, would provide Africa with light manufacturing and primary processing of raw materials and commodities.
It would also cover logistics to facilitate intra-regional trade such as shipping equipment, railways and rolling stock, and trade facilitating infrastructure like power.
It said that other aspects of the agreement included improvement in trade finance flows into Africa through risk participation arrangements and cross-referral of business contacts.
According to the statement, the agreement also included indirect funding of Export-Import Bank of China to obligors through Afreximbank as well as engagement in joint capacity building initiatives including staff and information exchange.
The statement said Oramah commended the Chinese Government for the financing support it had provided for the development of critical sectors of the African economy through its major development institutions.
Oramah said that the Chinese Government’s cumulative investment in Africa since 2000 had surpassed 80 billion dollars.
Afreximbank is a 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.
Since 1994, it has approved more than 41 billion dollars in credit facilities for African businesses, including about 6.2 billion dollars in 2015.
Afreximbank had total assets of 9.4 billion dollars as at 30 April 2016 and is rated BBB by Fitch and Baa2 by Moody’s.
The Bank is headquartered in Cairo. (NAN)