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Tag: AFREXIMBANK

  • BoI secures $750mn Afreximbank loan at single digits for MSMEs

    The $750 million (N250 billion) syndicated loan facility which the Bank of Industry (BoI) received from the African Export-Import Bank (Afreximbank) will be disbursed to Micro, Small and Medium Enterprises at single digit interest rate.

    Managing Director, Bank of Industry, Mr Olukayode Pitan made this disclosure on the last day of the Afreximbank 25th Anniversary and Annual General Meeting during an interview with journalists in Abuja.

    Pitan revealed that “the loan will be given to entrepreneurs in Nigeria for a period of between five and seven years, would enable the BoI bridge the funding gap for MSMEs which estimated at about N700 billion.”

    This fund he said would be “given to companies operating in the creative industry, manufacturing and gender based businesses to help reduce the unemployment rate in the country and create wealth for small and medium scale entrepreneurs.

    Read Also: BoI disburses N112.5b to customers

    “We are looking at small, medium and large enterprises. We are looking at enterprises or companies that have a focus in using local raw materials, companies that generates that generates employment and bring down their cost of borrowing” he said.

    Pitan stated that “the loan will be deployed at less than ten per cent interest per annum. We are working with the Central Bank of Nigeria so that the loan we will give to Nigerian businesses will be a longer term loan of between seven to eight years for the industrial sector.”

    The landmark deal was signed off in the presence President Muhammadu Buhari who insisted on witnessing the agreement signing ceremony in Abuja because the N250 billion syndicated facility financed by 16 banks (among which are: Africa Export-Import Bank, the ECOWAS Bank for Investment and Development,  and British Arab Commercial Bank Plc and four Nigrrian banks based in the United Kingdom) is the single largest facility of its kind to be received by a Development Finance Institution (DFI) in Nigeria.

    According to Pitan, “the idea is to support industries. What this loan allows us to do is, it gives additional N250 billion depending on the exchange rate that is used, between N230 billion to N250 billion to deploy to the industrial sector. There is gap in the funding of the industrial sector, to the tune of N704 billion. This is our way to reduce that gap.”

  • AfCFTA must be free and fair, Buhari insists

    …Adeosun elected Afreximbank Chairman

    Nigeria’s Finance Minister, Kemi Adeosun has been elected Chairman of the board of Africa Export Import bank (Afreximbank).

    Adeosun was elected chairman on Saturday in Abuja at the bank’s Annual General Meeting declared open by President Muhammadu Buhari. She will chair the bank for one year.

    Speaking at the opening ceremony of the AGM, President Muhammadu Buhari noted that Africa’s journey to prosperity “can only be achieved by supporting inclusive and sustainable projects. We must therefore continue to support Afreximbank to deliver on this mandate.”

    President Buhari as expected spoke on the much anticipated Nigeria’s signing of the Africa Continental Free Trade Agreement (AfCFTA) stating that, his administration will work towards a fair trade agreement with the rest of the continent.

    According to President Buhari, “significant progress has been made in these consultations. The team has met key stakeholders across our six geo-political zones. The responses have been diverse as would be expected. However, one clear message has emerged which is that any trade agreement must be both “free’ and ‘fair’. This fairness is achievable and we will work towards it.”

    He noted that “no nation can survive on its own. Trading is important and the terms of trade are important. Therefore, there is a need to ensure our national interests as well as our regional and international obligations are balanced.”

    His administration he added “has adopted a policy of inclusive economic growth and is determined to attain this by reducing our over reliance on crude oil. To date, we have invested aggressively in infrastructure to support our growth potential in agriculture and solid minerals. We are alsoempowering many Nigerian entrepreneurs in the entertainment and digital economies to mention a few.”

    Government he said will stand to enable those who can help themselves “but is equally committed to supporting those who can’t.” A decision that has forced the government to introduced “our Social Investment Program which is changing lives through, school feeding, conditional cash transfers and youth employment, among others.”

    Read Also: Buhari condoles with Japan over deaths

    Buhari informed the international gathering that “Nigeria has a very unique and important role to play. We are a vast nation of nearly 200 million people, with diversity of language, culture, natural endowments and aspirations. However what we all have in common is that at all levels, Nigeria is a trading nation.”

    The highlight of the day’s activities was the combined signing of the Memorandum of Understanding (MoU) between Afreximbank and Nigeria’s Bank of Industry (BoI) and Dangote group to finance his refinery valued at $750 million and $650 million respectively.

    Addressing the gathering, Afreximbank President, Dr. Benedict Oramah disclosed that Afreximbank has created a specialized institution, a fully owned subsidiary called the ‘’Fund for Africa’s Export Development” (FUNFED)”.

    The objective of the fund he said “is to contribute towards expanding the share of manufactured and service exports in Africa’s total exports by attracting appropriate FDI flows into those dynamic sectors.”

    Afreximbank’s initial investment commitment in the FUND amounts to US$100 million which is expected to attract additional investments to bring funds under management to US$1 billion in the near term.

    Speaking on the bank’s financial performance for the year end, 2017, Oramah stated that “revenues grew strongly by 25 percent to US$645 million, driven by healthy interest income on average assets of about US$14 billion, of which about 70% were loans and advances.”

    Net income as a result rose by 34 percent to reach a new record high of US$220 million.

    Oramah noted that “despite the fact that loans dropped by 18% at year- end following the repayment of about 3.2 billion in Countercyclical Trade Liquidity Facility loans, that fell due in December, Non-performing loans ratio only rose marginally from 2.4 percent to 2.5 percent.”

    The strong capital injection and internal capital generation ensured that the Bank ended the financial year with Shareholders’ Funds rising by 31% to US$2.1 billion, bringing combined shareholders’ fund and contingent capital to close to US$3 billion, up by 33% from 2016; Capital Adequacy ratio was at 26%, compared to 23% in 2017.

    Liquidity he told shareholders “was very strong with cash and due from banks reaching US$3.2 billion, up 153% from US$1.3 billion in 2016. Liquidity cover ratio was very strong at 185%, above our target of 105%. Access to debt markets was quite diversified with African sources of liquidity maintaining their importance in 2017 in line with our strategic goals.”

    Based on the very good performance, the Board of Afreximbank recommended a dividend payment amounting to a dividend yield of 5% fully paid shares.

  • Afreximbank plans $1b for trade, infrastructure

    The African Export-Import Bank (Afreximbank) has expressed its readiness to work with the Federal Government arrange about $1 billion financing for government’s investments in trade-enabling infrastructure.

    The bank has so far approved financing amounting to $17 billion for Nigerian entities between its commencement of operations in 1994 and last December, its President Benedict Oramah, said.

    Speaking during the bank’s visit to Nigeria, he said the lender’s facilities had made major impact on critical sectors of the economy. He added that the bank had loans outstanding of about $3.5 billion in Nigeria as at December last year.

    Oramah identified the sectors benefiting from the bank’s facilities as financial institutions, transport, hospitality, manufacturing, agro-allied, oil and gas, power, and telecommunications.

    He said that Afreximbank’s support to Nigeria had included 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. It also included the provision of $1.8 billion to support the economy during the recent oil price shock in 2015 to 2016.

    He enumerated that the bank’s current initiatives in Nigeria to include the development of testing and inspection centres across the country in collaboration with the Standards Organisation of Nigeria; establishment of a Centre of Excellence for Tertiary Healthcare/Medical Park; potential participation in the Nigeria SEZ Investment Company Ltd being promoted by the government; 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.

     

  • Afreximbank commits N17b to Nigeria

    ABOUT $17 billion has been approved by African Export Import Bank (Afreximbank) for Nigerian entities since its commencement of operations in 1994 and last December, its President, Benedict Oramah, has said.

    Oramah, who was speaking in Abuja when he led the bank’s delegation on a visit to President Muhammadu Buhari, said the bank’s facilities had made major impact on critical sectors of the Nigerian economy and that the bank had outstanding loans of about $3.5 billion in Nigeria as at 31 December 2017.

    He identified the sectors benefiting from the bank’s facilities to include financial institutions, transport, hospitality, manufacturing, agro-allied, oil and gas, power, and telecommunications.

    Oramah said Afreximbank’s support to Nigeria had included 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.

    He enumerated the bank’s current initiatives in Nigeria to include the development of testing and inspection centres across the country in collaboration with the Standards Organisation of Nigeria; establishment of Centre of Excellence for Tertiary Healthcare/Medical Park; potential participation in the Nigeria SEZ Investment Company Ltd being promoted by the government; 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 (CBN), in order to ensure access to trade finance; and development of an Afreximbank Africa Trade Centre in Abuja.

    Oramah added that the Bank was willing to work with the government to arrange financing of up to $1 billion to support the governments investments in trade enabling infrastructure. He invited President Buhari and the Nigerian government to attend the Afreximbank Annual Meetings scheduled to take place in Abuja from 11 to 14 July.

    Oramah also informed President Buhari that Afreximbank was organising the Intra-African Trade Fair in Cairo from 11 to 17 December to promote trade among African countries.

     

    The trade fair, being promoted in collaboration with the African Union and the Egyptian government, will be the continent’s single largest trade fair and the first of its kind. It will feature a seven-day trade show where Nigerian businesses could join others to showcase their capital goods and service offerings to a large market, including private sector corporates and government institutions from up to 55 African countries.

    Responding, President Buhari thanked Oramah for the visit and commended Afreximbank for its support to the Nigerian economy as well as its work in promoting African trade. He urged the Bank provide more support to Nigeria’s agriculture sector as a way of boosting jobs and facilitating trade.

     

  • Afreximbank plans $2b financing deal

    The African Export-Import Bank (Afreximbank) is arranging up to $2 billion in financing support to Angola, its President Benedict Oramah has said.

    Oramah, who spoke in Luanda during an audience with President João Manuel Gonçalves Lourenço of Angola, said the amount included various trade financing facilities for essential imports.

    The meetings 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.

    Oramah said 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.

    Oramah also held meetings with Archer Mangueira, Minister of Finance of Angola, and José de Lima Massano, Governor of the Banco Nacional de Angola, to agree on modalities for the implementation of the proposed financing as well as on Angola’s participation in the Intra-African Trade Fair being organised by Afreximbank in Cairo from  December 11 to 17.

  • Afreximbank holds parley on intra-African trade

    The African Export-Import Bank (Afreximbank) is set to host the inaugural Intra-African Trade Fair (IATF2018) billed for December 11 to 17.

    Hosted by Egypt, through the Export Development Authority (EDA), and organised in collaboration with the African Union (AU) and other partners, the fair is aimed at deepening trade ties among African countries and  supporting the implementation of the African Continental Free Trade Area (AfCFTA) Agreement.

    A conference was held last week on the forthcoming fair. It featured a panel discussion entitled: “Towards a strategy for deepening trade between Egypt and Africa”.

    It was attended by former President Olusegun Obasanjo and Chairman of the IATF2018 Advisory Council; Tariq Qabeel, Minister of Trade and Industry of Egypt; Benedict Oramah, President of Afreximbank; and Ahmed el-Sewedy, Chairman of the Elsewedy Group, who represented the private sector.

    Obasanjo, who highlighted the various capabilities and resources of African countries, said larger economies, like Nigeria, Egypt and South Africa, had important roles in leading the transformation of the continent.

    Their participation in the AfCFTA would contribute to the success of the agreement, Obasanjo said, noting: “The train has left the station” and that those countries that were yet to sign on to the agreement would have to catch up.

    Oramah said the IATF was being organised as part of initiatives by Afreximbank to address the challenge of the low volume of intra-African trade, which he attributed largely to lack of market information on the continent.

    He said many African businesses were not aware that some of the products they import could be bought for less from neighbouring countries.

    IATF2018, the first-ever such fair to be organised, would provide a platform for exchange of information on markets, dialogue and meetings among businesses, he said. It would also enable traders to conclude deals and access information about investment opportunities.

     

  • Afreximbank announces $2b financing deal

    The African Export-Import Bank (Afreximbank) is arranging up to $2 billion in financing support to Angola, the bank’s President Benedict Oramah has said.

    Oramah, who was speaking in Luanda during an audience with President João Manuel Gonçalves Lourenço of Angola, said that the amount included various trade financing facilities for essential imports.

    The meetings 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.

    Oramah said that 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.

    Oramah also held meetings with Archer Mangueira, Minister of Finance of Angola, and José de Lima Massano, Governor of the Banco Nacional de Angola, to agree on modalities for the implementation of the proposed financing as well as on Angola’s participation in the Intra-African Trade Fair being organized by Afreximbank in Cairo from 11 to 17 December.

     

  • Afreximbank’s $1.5b facility for Zimbabwe

    The African Export-Import Bank (Afreximbank) will arrange between $1 billion and $1.5 billion of funded and guarantee facilities to support businesses interested in investing in Zimbabwe, its President, has announced.

    Speaking during a special session on “Doing Business in Zimbabwe” at the Africa CEO Forum in Abidjan, Dr. Oramah said the facilities would be arranged under ZimOpen, an inward investment support facility, which Afrexim-bank was putting in place in collaboration with the government of Zimbabwe.

    Oramah told the session, chaired by President Emmerson Mnanga-gwa of Zimbabwe, that ZimOpen was aimed at de-risking eligible inward investment into Zimbabwe, catalysing trade finance inflows and increasing the availability of U.S. dollar liquidity in order to assure investors of more predictability in exit possibilities and terms.

    “As Zimbabwe opens its doors to business once again, many entrepreneurs and potential investors seem eager to join the party, but their enthusiasm is often constrained by risk considerations,” he stated. “Afreximbank is working on a vast programme of guarantees which would mitigate the investment and country risks.”

    The President said Afrexim Bank came with strong credentials on Zimbabwe, noting that over the past 20 years, the bank had disbursed more than $7 billion to Zimbabwean entities in the public and private sectors without suffering any credit losses.

    Earlier, President Mnangagwa made a presentation on Zimbabwe’s social and economic development agenda and discussed initiatives the government was taking to promote investments.

     

  • Afreximbank okays $700m for trade, infrastructure

    The African Export-Import Bank (Afreximbank) will arrange $700 million multi-sourced finance to support trade and related infrastructure projects in Mali, focusing mainly on transport logistics, tourism, agro-processing and the financial sector, its President, Benedict Oramah, has said.

    Oramah spoke after a meeting with the Malian President Ibrahim Boubacar Keita in Bamako. He said the support would target activities aimed at increasing the country’s industrial capacity in cotton processing and at developing the transport and hotel infrastructure.

    “We have identified a number of projects to support Mali’s economic development, Oramah said. Those included “the financing of an industrial park along the border with Burkina Faso and Côte d’Ivoire; the development of the country’s aviation sector; the construction of cross-border railway infrastructure; and financial support to the local banking industry”.

    “These key initiatives align with Afreximbank’s strategy to promote intra-African trade and the industrialisation of the continent,” he stated, adding that the Bank would deploy its Food Emergency Contingent Trade Financing Facility in the country to enable Mali mitigate and efficiently manage vulnerability to drought by substituting physical food reserves with readily available financing to import equivalent volumes of food in case of an emergency.

    Earlier, Keita commended Afreximbank for its support in financing Mali’s economy and gave assurance of the country’s commitment to facilitating the bank’s future endeavours in the country.

    “As a landlocked country with over 1.2 million square kilometres of land, Mali requires robust cross-border transport linkages,” he stated, adding that the country’s development relied strongly on regionally integrated projects where efforts could be combined to maximise returns.

    The new projects and initiatives to be supported by Afreximbank will complement the Bank’s already strong support to the tourism and hospitality sector, which include the financing of Radisson Hotel and   Sheraton Hotel, set to open in May.

     

  • How trade can lift economies, by Afreximbank

    The African Continental Free Trade Area (AfCFTA) will lead to Africa’s economic development and bring about a better future for the continent, Benedict Oramah, President of the African Export-Import Bank (Afreximbank), has said.

    Contributing to a panel discussion on “Financing Intra-African Trade” during the Business Forum, which held in Kigali, Rwanda last week to mark the launch of the AfCFTA, Oramah said as part of its drive to promote intra-African trade and regional integration, Afreximbank had identified several countries that served as hubs for trade among African countries.

    Those hubs were already playing significant roles in their sub-regions in supporting cross-border trading and were critical in AfCFTA implementation, he said. They included South Africa in Southern Africa, Nigeria and Cote d’Ivoire in West Africa, Kenya in East Africa and Egypt in North Africa.

    Oramah said that Afreximbank was working on the establishment of export trading companies which would aggregate products from small traders for export across the continent and beyond. The operation of such companies would remove the need for individual small traders, who were not equipped for such trade, to try to export the products by themselves.

    He added that the Bank had signed a $1 billion memorandum of understanding with the Export Credit Insurance Corporation of South Africa for a South Africa-Africa Trade Promotion Programme aimed at expanding trade between South Africa and other African countries. A similar programme, which the Bank signed with Egypt, in the amount of $500 million, was quickly exhausted and had to be replenished, he stated.

    Afreximbank had also introduced an African Guarantee Programme to enhance the ability of African businesses to obtain trade financing. Earlier, Cyril Ramaphosa, President of South Africa, said that although the AfCFTA had been long in coming, it offered a lot of hope for the African continent. He urged all Africans to rally around the effort, saying that it would benefit both big and small countries.

     

     

    Also participating in the panel were Gabriel Negatu, Director General, East Africa Regional Development and Business Delivery Office of the African Development Bank; Diane Karusisi, CEO, Bank of Kigali, Rwanda; and James Mwangi, CEO, Equity Bank, Kenya.