The third day of the third Intra-African Trade Fair (IATF2023) just wrapped up, and it was a big one! The African Export-Import Bank (Afreximbank) sealed deals worth over a billion dollars with some top businesses from across the continent. That’s a whole lot of cash flying around, and it’s all in the name of boosting trade and investment in Africa.
Let’s break it down. First up, United Bank for Africa (UBA) PLC snagged a sweet $150 million trade finance facility agreement. This cash is going to be used to support trade and trade-related transactions in Nigeria, helping out businesses in various sectors to deal with the fallout from the Russia-Ukraine crisis. It’s all about keeping the wheels of trade turning, and this deal is a big part of that.
But that’s not all. Afreximbank also inked a $10 million deal with FDH Bank Malawi to support trade finance in Malawi. Then there’s the $55 million trade facilitation limits agreement with Banque Commerciale du Burundi (BANCOBU) to help with importing essential commodities like petroleum products. And let’s not forget the $40 million AFTRAF facility for Banque de Credit de Bujumbura (BCB) to support trade finance in Burundi. That’s a whole lot of money being thrown around to keep the wheels of trade spinning.
And it’s not just banks getting in on the action. Exodus and Company signed a term sheet for a whopping $141 million intra-African investment finance facility, while Ora SPV/Vista Group and ADI SPV/Vista Bank also got in on the action with deals worth EUR 140 million and EUR 113 million respectively. There’s even a $75 million senior debt facility for Lilium Gold to enhance Burkina Faso’s mining infrastructure. That’s a whole lot of cash being pumped into African businesses!
But it’s not all about the money. Afreximbank also signed a memorandum of understanding with the International Centre for Regional Integration and Trade Research (ICRITR) to collaborate on trade and investment. And let’s not forget the $200 million mandate letter signed with the Anambra State Government of Nigeria to support the development of major projects in the state. That’s a whole lot of support for local development!
And there’s more! Afreximbank also signed a $40 million line of credit with Central Africa Building Society (CABS) to help build capacity among small and medium enterprises in Zimbabwe. Plus, there’s a heads of terms agreement with Arise Integrated Industrial Platforms (ARISE IIP) to develop African Quality Assurance Centres (AQAC) projects in Benin and Gabon. That’s a whole lot of collaboration to boost trade and investment!
To top it all off, Afreximbank also announced cooperation agreements with the Comoros National Investment Promotion Agency (ANPI – Invest in Comoros), the Kenya Private Sector Alliance (KEPSA), and the Kenya Association of Manufacturers (KAM) to accelerate intra-African trade and investment. That’s a whole lot of teamwork to make the dream work!
So, what’s the big takeaway from all this? Well, it’s clear that Afreximbank is serious about boosting trade and investment in Africa. With deals worth over a billion dollars, it’s clear that there’s a whole lot of support being thrown behind African businesses. And with the Intra-African Trade Fair (IATF2023) in full swing, it’s clear that there’s a whole lot of excitement and opportunity in the air. It’s a big win for African trade and investment, and it’s only going to get bigger from here!