The Southern African country of Angola is ready to receive up to $2 billion in financing support from the African Export-Import Bank (Afreximbank). This was made known recently by the President of Afreximbank Dr. Benedict Oramah during an audience with Angola’s President João Manuel Gonçalves Lourenço in Luanda the capital of Angola.
According to Oramah, the amount included various trade financing facilities for essential imports. The financing would also support the financial services sector by enabling selected Angolan Banks to issue letters of credit, to be confirmed by Afreximbank, for the continued importation of essential commodities, including food items and pharmaceuticals.
They also discussed proposals for $1 billion to be offered under the Bank’s Investment Guarantee Refinancing Facility (ICREF) to facilitate private sector investments in industrial and non-oil productive activities, including export manufacturing, fishing, agri-business and tourism. ICREF will be offered through designated banks. Afreximbank also spoke with Archer Mangueira, Minister of Finance of Angola, and Dr. José de Lima Massano, Governor of the Banco Nacional de Angola, in order to agree on modalities for the implementation of the proposed financing.
This is a welcome development for Angola’s economy which has been described as a harder place to do business. The country’s ranking in the World Bank’s 2018 Doing Business report is 175th out of 190. This is among the lowest in sub-Saharan Africa and same spot as its 2017 ranking. This financing by Afreximbank could also help boost the financial sector of the economy which has suffered from several issues such as corruption scandals.
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.