Afreximbank, CEXIM sign $600 million loan facility for trade finance transactions


The African Export-Import Bank (Afreximbank) and the Export-Import Bank of China (CEXIM) have signed a US$600 million loan facility.

This facility would enable the bank fund loans and trade finance transactions.

The agreement was signed by CEXIM vice president, Wencai Zhang, and Afreximbank Executive Vice President, George Elombi, in the presence of their Presidents, Shengjun Ren, and Prof. Benedict Oramah in Beijing, China on Tuesday.

In a statement made available to Zambia Monitor on Friday, the loan would facilitate and finance trade economic cooperation between the member states of Afreximbank and China.

Read more: Afreximbank seals $400 million deal to support SMEs in Africa

It further stated that loan would also aid in promoting the financial co-operation between Africa and China.

Commenting on the agreement, Oramah noted that it was fortuitous that the signing of this important facility coincides with the 10th anniversary of the Belt and Road Initiative (BRI).

He said this was strong evidence of the rapid growth in co-operation between China and Africa, noting that the BRI was a blueprint of cooperation aimed at enhancing policy, trade infrastructure, financial and people-to-people connectivity.

“As a bank we are committed to play a big role especially of leveraging financial resources into Africa. This facility will help to catalyse trade financing between Africa and the China, thereby enhancing flow of goods, capital and technology,” Oramah said.

He added that through its 6th Strategic Plan, which runs from 2022 to 2026, Afreximbank was working diligently to broaden its role in African trade finance and continues to see lots of collaboration opportunities on the continent.

“Working with partners like CEXIM, we aim to attain the goals of this strategy, especially supporting China-Africa Cooperation and expanding Africa’s export manufacturing capacity,” Oramah said.

CEXIM President Ren noted the signing of the agreement as a concrete measure taken by CEXIM in fulfilling its due responsibilities to promote high-quality BRI cooperation and to implement the nine programmes under the Forum on China and Africa Cooperation framework.

Ren said it was also an important example of third-party market co-operation carried out by CEXIM.

Under the agreement, the parties would strengthen co-operation in various areas including credit business, equity investment, capital market operations, trade finance, personnel exchange and knowledge sharing, so as to make positive contributions to China-Africa economic cooperation and trade as well as sustainable economic and social development of African countries.

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