The African Export-Import Bank (Afreximbank) says it has approved 200 million dollars facility for Egypt’s Small and Medium Enterprises (SMEs) to boost manufacturing activities in the country.
The President of the bank, Dr Benedict Oramah said this in a statement issued on Friday in Lagos.
According to him, the Central Bank of Egypt will act as the procurement guarantor, while an Arab-African International Bank, Banque Misr, will serve as custodian.
“The facility will help to expand Egypt’s industrial base and create jobs for the country’s youths.
“This transaction was developed in light of the strong relationship that Afreximbank enjoys with Banque Misr and the Central Bank of Egypt, both shareholders in Afreximbank.
“It is a continuation of the programmes and facilities we have been implementing in recent years in support of the country’s economic and financial reforms.”
Mohamed Eletreby, the Chairman of Banque Misr, commended Afreximbank for its continued support to the Egyptian bank.
Eletreby said that the facility would create opportunities for businesses operating in the informal sector to join the formal economy.
“It would also provide the means for SMEs to integrate into Egypt’s industrial value chain, thereby, contributing more effectively to the country’s growth,” he added.
According to Eletreby, the transaction, the first between Banque Misr and Afreximbank, marks the beginning of increased collaboration between the two financial institutions.
Afreximbank, which has its headquarters in Cairo, is the foremost Pan-African multilateral financial institution devoted to financing and promoting intra- and extra-African trade.
The bank was established in October 1993, by African governments, African private and institutional investors, and non-African investors.
Since 1994, it has approved more than 51 billion dollars in credit facilities for African businesses, including about 10.3 billion dollars in 2016.
Afreximbank has total assets of 9.4 billion dollars as at April 30, 2016 and is rated BBB+ (GCR), Baa1 (Moody’s), and BBB- (Fitch). (NAN)