The African Import-Export Bank (Afreximbank) in conjunction with Russian Export Centre (REC) recently unveiled a special credit facility to support airlines and governments seeking funds to buy Russian-made commercial aircraft in order to improve aviation infrastructure. This news comes a few months after REC become a shareholder of Afreximbank.
“Our partnership with the Russian Export Centre gives key players in Africa’s aviation industry tremendous opportunities,” said Rene Awambeng, Afreximbank’s Global Head for Client Relations. “The 17-year average fleet age of African airlines is the oldest of any world region, and by showcasing state-of-the-art and more fuel-efficient aircraft, and the newest helicopters, together with our expertise and experience in aircraft finance, we can enable the upgrading of Africa’s aviation industry.”
This upgrade is a key element in boosting economies and many industry sectors. We look forward to conversations with authorities and the aviation industry to discuss their development plans and identify areas where they require funding and technical assistance,” Rene said further.
This was made known in Nairobi Kenya when Afreximbank and Russian Export Center launched a series of roadshows featuring presentations that will showcase a range of cutting-edge Russian aircraft and helicopters. The demonstrations and flight experiences will take place in the next five days in Kampala, Lagos, Abuja and Bamako.
Managing Director for International Development at the Russian Export Center, Anna Belyaeva, said, “African governments generally are aware of the need to develop their aviation infrastructure and we welcome the opportunity to discuss how we can help domestic and international airlines meet the challenges and opportunities that face them.
“We have experts from airline manufacturers and trade financiers at the roadshow and will be able to provide specialist advice and guidance on all aspects of aviation. REC offers a wide range of support tools for Russian Exporters and already has success stories of supporting export of civil aircrafts and helicopters. We see a considerable potential for Russian aviation industry products in Africa and are ready to together with Russian exporters and Afreximbank on this market.”
The roadshows are expected to be attended by representatives of Africa’s commercial aviation sector, senior executives from ministries of tourism, civil aviation authorities, airline leasing companies and many more.
What you should know about Afreximbank
Afrexim Bank is the foremost Pan-African multilateral financial institution devoted to financing and promoting African trade.
It was established under two basic constitutive instruments which are the agreement signed by the member states and multilateral organizations, which gives the bank the status of an international multilateral organization and the Charter, which governs its corporate structure and operations.
The bank was established in October 1993 by African governments, African private and institutional investors, and non-African investors.
Afrexim Bank commenced operations on 30 September 1994, following the signature of a headquarters agreement with the host government in August 1994. Since 1994, it has approved more than 51 billion dollars in credit facilities for African businesses, including about 10.3 billion dollars in 2016.
The bank is based in Cairo, Egypt and it is rated BBB+ (GCR), Baa1 (Moody’s), and BBB- (Fitch) and has total assets of 9.4 billion dollars as at April 30, 2016.
Countries currently on the list of Afreximbank participating and shareholding states include Angola, Benin, Botswana, Burkina Faso, Burundi, Cameroon, Cape Verde, Chad, Comoros, Côte d’Ivoire, Democratic Republic of Congo, Djibouti, Egypt, Ethiopia, Gabon, Gambia, Ghana, Guinea, Guinea Bissau, Kenya, and Lesotho. Others are Liberia, Madagascar, Malawi, Mali, Mauritania, Mauritius, Morocco, Mozambique, Namibia, Niger, Nigeria, Republic of Congo, Rwanda, Senegal, Seychelles, Sierra Leone, Sao Tome and Principe, South Africa, South Sudan, Sudan, Tanzania, Togo, Tunisia, Uganda, Zambia and Zimbabwe.
What you should know Russian Export Center
Russian Export Center JSC (REC) is a state-owned development institute established by the Government of Russia to support the development of the non-commodity exports industry/sector.
REC offers a wide range of financial and non-financial support tools to help Russian exporters explore the foreign markets and build capacity in the global trade.
REC also acts as a focal point for interaction with the relevant domestic ministries and agencies and cooperates with key industries and business players in Russia to improve the export conditions in Russia and help bypass trade barriers.
The Russian Export Center Group incorporates the Russian Agency for Export Credit and Investment Insurance (EXIAR JSC) and Eximbank of Russia JSC which aims to offer comprehensive integrated services to the export-oriented companies.