The African Export-Import Bank (Afreximbank) has approved a total of $17 billion in financing for several entities in Nigeria between its commencement of operations in 1994 and December last year. This was made known over the weekend by the president of the Bank, Dr Benedict Oramah when an Afreximbank delegation visited the President of Nigeria, Muhammadu Buhari in Abuja.
Over the past 24 years, the sectors that have benefited from the bank’s facilities include financial institutions, transport, hospitality, manufacturing, agro-allied, oil and gas, power, and telecommunications. As at 31 December 2017, the bank had loans outstanding of about $3.5 billion in Nigeria.
According to Dr Oramah, below are some of Afrexim’s support to Nigeria:
“Afreximbank’s support to Nigeria had included the provision of liquidity and trade finance lines of more than $800 million during the banking consolidation when many international banks cut credit lines to the country and the provision of $1.8 billion to support the economy during the recent oil price shock in 2015-2016.
“The bank’s current initiatives in Nigeria include the development of testing and inspection centres across the country, in collaboration with the Standards Organisation of Nigeria, SON; establishment of a Centre of Excellence for Tertiary Healthcare/Medical Park; and potential participation in the Nigeria SEZ Investment Company Ltd being promoted by the government.
‘’They also include support for industrial projects through loans to strategic banks; arrangement and disbursal of $750 million to the Bank of Industry in June; provision of trade and letter of credit lines to all Nigerian banks, in close coordination with Central Bank of Nigeria, in order to ensure access to trade finance; and development of an Afreximbank Africa Trade Centre in Abuja.
Dr Oramah further said that “the bank is willing to work with the government to arrange financing of up to $1 billion to support the government’s investments in trade-enabling infrastructure.”
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: 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.