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Afreximbank, Nigerian State Sign $200 Million Debt Financing Deal

Afreximbank, Nigerian State Sign $200 million debt Financing Deal

The African Export-Import Bank (Afreximbank) on Friday, September 8 announced a deal with Nigeria’s Anambra state to collaborate on development efforts through provision of advisory services.

The agreement also includes a potential debt financing program of up to $200 million, the bank said in a statement.

In addition, the parties will collaborate on trade and investment promotion in Anambra State through the African Sub-Sovereign Governments Network (AfSNET) and facilitate the implementation of the African Continental Free Trade Agreement.

Afreximbank said they inked the deal at the just concluded 2023 Anambra Investment Summit, themed “Laying the Foundation for a Prosperous and Smart Mega City.”

Better collaboration with Afreximbank

With the new deal, the financial institution is set to work with the Anambra State Investment Promotion and Protection Agency to provide training and capacity building on trade and investment.

Further, the Bank will undertake investment forums, identify, and prepare strategic trade and investment projects and foster collaboration between sub-sovereign governments in Africa.

“Under the terms of the MOU, Afreximbank and the state government will jointly prioritize strategic projects for preparation and funding, collaboratively evaluating each project to formulate a time-bound work programme for effective execution,” part of the statement read

Other areas of collaboration include provision of transaction advisory services aimed at facilitating the procurement of debt and equity capital.

It will also focus on export development advisory, twinning services, and senior debt structuring.

Ready to Support Anambra State

Afreximbank and the Anambra State Government will also conclude all prerequisite actions necessary for securing a financing programme of up to $200 million.

In an address to the summit, Mrs. Awani, speaking on behalf of His Excellency Prof Benedict Oramah, President and Chairman of the Board of Directors, said that Afreximbank’s mission aligned seamlessly with Anambra’s industrialization objectives, including its vision for a smart mega city.

She further noted that the Bank had identified the emergence of industrial parks and special economic zones as a strategic priority to accelerate Africa’s industrial infrastructure development.

“These facilities do not only optimize capital deployment but also drive economies of scale and nurture ecosystem development. They also enable the use of otherwise inaccessible technologies and cutting-edge infrastructure,” she said.

Partnering with Private sector

Additionally, Awani noted that such projects required substantial funding through innovative partnership and African private sector.

“Just as we have championed the transformative potential of industrial parks and special economic zones across Africa through public and private sector collaboration, committing over US$1.5 billion so far to the realization of these projects, Afreximbank is ready to support Anambra State, as it is doing in Ogun and Abia States (Enyimba Industrial City), to promote similar projects here,”

African Export-Import Bank (Afreximbank) is a Pan-African multilateral financial institution whose mandate is to finance and promote intra-and extra-African trade.

For 30 years, the Bank has deployed innovative structures to deliver financing solutions that support the transformation of the structure of Africa’s trade, accelerating industrialization and intra-regional trade, thereby boosting economic expansion in Africa.