AfDB regional director Gabriel Negatu. FILE PHOTO | NMG
Summary
- The facility consists of a three-year $150 million (Sh15.4 billion) unfunded risk participation agreement or guarantees and a four-year $300 million (Sh30.8 billion) trade finance line of credit.
- Afreximbank said recently it plans to disburse $90 billion (Sh9.3 trillion) to support African trade in the next five years.
The African Export-Import Bank
(Afreximbank) has secured $450 million (Sh46.3 billion) trade finance
package from the African Development Bank (AfDB).
The
facility consists of a three-year $150 million (Sh15.4 billion) unfunded
risk participation agreement or guarantees and a four-year $300 million
(Sh30.8 billion) trade finance line of credit.
“This
composite facility will help to expand Afreximbank’s risk-bearing
capacity for the confirmation of letters of credit and to support more
trade through the provision of increased liquidity to local financial
institutions and corporates in Africa,” said AfDB in a statement.
“Given
Afreximbank’s commitment to helping African economies diversify their
exports, strengthen trade value chains and promote value addition, this
facility will contribute to macroeconomic resilience in at least 28
countries,” added AfDB.
Afreximbank said recently it plans to disburse $90 billion (Sh9.3 trillion) to support African trade in the next five years.
The continental trade finance bank said the plan, covering 2017 and 2021, is to fund intra-African trade, industrialisation and export development as well as trade finance leadership and financial soundness on the continent.
The continental trade finance bank said the plan, covering 2017 and 2021, is to fund intra-African trade, industrialisation and export development as well as trade finance leadership and financial soundness on the continent.
“The philosophy behind it (strategic plan)
is to build solid export manufacturing capacities..” Afreximbank
President Benedict Oramah said.
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