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#IATF2023: Afreximbank secures over $1bn in trade and investment deals
Intra-African Trade Fair (IATF2023) attendees have witnessed the signing of financing and other agreements exceeding $1bn between the African Export-Import Bank (Afreximbank) and various leading business entities from across the continent.
Source: Pexels
The Bank signed a $150m trade-finance facility agreement with United Bank for Africa (UBA) Plc.
This agreement, under the Ukraine Crisis Adjustment Trade Financing Programme for Africa, will support UBA clients in financing trade-related transactions to mitigate the adverse effects of the Russia-Ukraine crisis on the Nigerian economy.
Signed by Denys Denya; executive vice president; finance, administration and banking services, Afreximbank; and Oliver Alawuba; managing director of UBA Plc, the facility is expected to enhance confidence in the settlement of international trade transactions for strategic imports.
Another facility agreement, for $10m, was signed with FDH Bank Malawi to support trade finance in Malawi.
Gwen Mwaba; director, trade finance, signed for Afreximbank while George Chitera; deputy managing director, signed for FDH Bank Malawi.
$55m agreement with Bancobu
Under a facility agreement with Banque Commerciale du Burundi (Bancobu), Afreximbank will provide $55m trade-facilitation limits to Bancobu to support importation of essential commodities, such as petroleum products, which are important for Burundi’s trade and manufacturing sector.
Rene Awambeng; global head, client relations, signed for Afreximbank while Sylvere Bankimbaga; deputy managing director, signed on behalf of Bancobu during a ceremony witnessed by Audace Niyonzima, minister of finance, budget and economic planning, of Burundi.
Banque de Credit de Bujumbura – $40m
Afreximbank also signed an agreement under which it will provide a $40m Aftraf facility to Banque de Credit de Bujumbura (BCB) to support trade finance in Burundi. Signers were Rene Awambeng, global head, client relations, for Afreximbank and Roger Guy Ghislain Ntwungeye; managing director for BCB.
A term sheet for a $141m intra-African investment finance facility was signed with Exodus and Company.
Denys Denya; executive vice president, finance, administration and banking services, signed for Afreximbank while Progress Mambo; chief executive officer, signed for Exodus and Company.
Another term sheet for an €140m intra-African trade investment facility was signed with Ora SPV/Vista group for funds to be deployed in Burkina Faso.
Kanayo Awani; executive vice president, Intra-African Trade Bank, signed for Afreximbank while Simon Tiemtore; chairman of Lilium Capital, signed for Ora SPV/Vista group.
ADI SPV/Vista Bank – €113m
The Bank also signed a term sheet with ADI SPV/Vista Bank for a €113m facility to be deployed in Burkina Faso. The term sheet was signed by Kanayo Awani; executive vice president, Intra-African Trade Bank, for Afreximbank, and Simon Tiemtore; chairman of Lilium Capital, for ADI SPV/Vista Bank.
Another term sheet signed during the day was with Lilium Gold for a $75m senior debt facility for a strategic investment that will significantly enhance Burkina Faso's mining infrastructure through the acquisition of the Boungou and Wahgnion gold mines.
Helen Brume; director, project and asset-based finance, signed for Afreximbank while Simon Tiemtore; chairman of Lilium Capital, signed for Lilium Gold.
Sapro Mayoko – $96m
The Bank also signed a term sheet with Sapro Mayoko for a $96m iron-ore mine-development facility in Congo. The document was signed by Kanayo Awani; executive vice president, Intra-African Trade Bank, for Afreximbank and Paul Obambi; chief executive officer, for Sapro Mayoko.
An additional document inked during the day was a memorandum of understanding with the International Centre for Regional Integration and Trade Research (ICRITR) signed by Kanayo Awani; executive vice president, Intra-African Trade Bank, for Afreximbank and Charles Okechukwu Esimone; vice chancellor, Nnamdi Azikiwe University, Awka, Nigeria, for ICRITR.
Anambra State – $200m
Earlier on the second day of the trade fair, Afreximbank signed a mandate letter to provide capital-raise financial advisory services to the Anambra
State Government of Nigeria for an estimated $200m facility to support the development of three major projects in the state, covering the Ikenga mixed-use industrial city project, the Anambra Export Emporium and the Akwaihedi Unubi Uga automotive industrial park.
#Afreximbank and Griner Engenharia signed a USD 30 million Corporate Loan Facility, at the #IATF2023. The deal aims to create over 1,500 jobs and contribute over USD 100 million to intra-African trade, enhancing Griner's commitment to trade-supporting infrastructure in Africa. �� pic.twitter.com/JRvc0eaJN5
— Intra-African Trade Fair (@iatf2023) November 15, 2023
The Bank also signed an agreement to provide the state government with financial advisory services for the development of an operational and governance framework for the Anambra Diaspora Fund, including capital-raise financial-advisory services for the Anambra Intra-City Rail Master Plan project and the Anambra Diaspora Fund.
Kanayo Awani; executive vice president, Intra-African Trade Bank, signed for Afreximbank while Mark Okoye; chief executive officer, Anambra State Investment Promotion and Protection Agency, signed for the state government.
Central Africa Building Society - $40m
Afreximbank also signed an agreement with Central Africa Building Society (Cabs), Zimbabwe's largest building society, to provide a $40m line of credit to help build capacity among hundreds of small and medium enterprises (SMEs).
Signed by Denys Denya; executive vice president, finance, administration and banking services, Afreximbank, and Mehluli Mpofu; managing director of Cabs, the agreement is for three years and is aimed at fostering the growth of the SME sector by supporting productive sectors, such as agriculture, manufacturing and mining.
Furthermore, the Bank signed a heads of terms agreement with Arise IIP for the implementation of African Quality Assurance Centres (AQAC) projects in Benin and Gabon.
Under the heads of terms, Afreximbank will develop AQACs to offer conformity assessment services such as testing, inspection and certification services in Benin, Gabon and, possibly, other African countries in collaboration with Arise IIP within industrial parks developed by Arise to support park tenants and other industries outside to enable them to meet local and export market requirements.
The AQAC initiative was created by Afreximbank to support African countries to improve their capacity in complying with international standards and technical regulations so as to promote exports and facilitate intra- and extra-African trade while ensuring the safety of products for consumption in Africa.
Gagan Gupta; founder and chief executive officer of Arise IIP, signed for the company while Oluranti Doherty; director of export development, signed for Afreximbank.
Co-operation agreements
The Bank also announced the conclusion of co-operation 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), aimed at accelerating intra-African trade and investment.
The agreements, signed, seek to deepen collaboration with the institutions through sharing of ideas, exchange of business-oriented information to facilitate trade and investment, business matchmaking, grants, training, technical assistance and capacity building, interinstitutional co-operation and other agreed activities.
They are intended to increase the impact of Afreximbank’s Tradar Club, a member-driven network set up to empower international businesses and executives to transform trade and investments in Africa through trusted trade intelligence and advisory services.
IATF2023, Africa’s largest trade and investment fair, opened on Thursday, 9 November and ends on Wednesday, 15 November 2023.
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