Afreximbank gets $50million line of credit from BADEA

Trade operations in Africa is set to see a boost with increased financing as the Arab Bank for Economic Development in Africa (BADEA) and the African Export-Import Bank (Afreximbank) have signed an agreement for a $50 million line of credit granted to Afreximbank.
The line of credit extended by BADEA will be used to finance trade operations between Arab and African countries aimed at guaranteeing regular flows of goods and services vital for economic growth.
Sidi Ould Tah, Director General of BADEA, and Benedict Oramah, President of Afreximbank signed the line of credit agreement in Khartoum on April 28. It was one of two cooperation instruments entered into by the two institutions during a visit to the BADEA headquarters by an Afreximbank delegation led by Oramah.
The second was a memorandum of understanding providing a framework for cooperation in promoting economic and social development of African countries through the funding of private sector projects and trade finance operations.
Speaking after the signing of the two documents, Ould Tah said that the line of credit, which would finance Arab exports to Afreximbank member states eligible for BADEA funding, marked the first step in cooperation between the two banks in the area of trade finance operations.
According to BADEA, the line of credit, which is part of its programme for financing foreign trade, will target such sectors as energy, industry and agriculture which contribute to sustainable development, improve living conditions and alleviate poverty.
“The signing of the line of credit demonstrated BADEA’s commitment to working with Afreximbank to develop the African continent and promote Arab-Africa trade,” said Oramah.
The Arab bank representatives noted that the line of agreement credit, demonstrated that BADEA identified with Afreximbank’s efforts to assist African countries to manage the consequence of commodity price shocks.
“Afreximbank, working with BADEA, is expected to create instruments and programmes to accelerate Arab-Africa trade and investment,” said Tah.
Afreximbank stated that it saw an opportunity to work with BADEA to expand its $500 million Egypt-Africa Trade Promotion Programme and to replicate it in other Arab countries.
It also hoped to match capital-surplus Arab economies with resource-endowed African countries in order to enable the Arab world and Africa expand their influence and relevance in the global economy.

 

ISAAC ANYAOGU