The African Export-Import Bank has signed an agreement with Anambra state to collaborate on state development efforts through the provision of project preparation and advisory services, including a potential debt financing programme of up to US $200 million.
Key details of the agreement
Under the pact, Afreximbank and Anambra will prioritize projects for preparation and funding, collaboratively evaluating each project to formulate a time-bound work programme for effective execution.
Afreximbank, a multilateral financial institution mandated to finance and promote intra-and extra-African trade, said it will work with the state government to establish bankability for key projects, including the Ikenga Mixed-Use Industrial City, the Anambra Export Emporium and the Akwaihedi Unubi Uga Automotive Industrial Park, as well as any other project agreed upon by the parties.
The two parties will also conclude all actions necessary for securing a credit of up to $200 million from Afreximbank and its affiliated entities for the projects.
The memorandum was signed by Kanayo Awani, Afreximbank’s executive vice president, intra-african trade bank, and Gov. Charles Soludo, during the Anambra Investment Summit.
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In addition, the MOU provides for the parties to 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.
Other areas of collaboration covered in the MOU include the 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.
“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,” Mrs Awani said on behalf of Benedict Oramah, chairman of the Afreximbank board.
“With peace and security gradually returning to the state, with our youth beginning to realize that their future cannot thrive in an environment of widespread insecurity, we can look forward to a similar US$400 million industrial park project in collaboration with the State. It makes business sense to do so, and we have advanced discussions with Anambra State Investment Promotion and Protection Agency (ANSIPPA) to implement creating over 10,000 jobs while bringing export-oriented businesses to Anambra state.
Nigeria projects
Afreximbank said it has invested over US$36 billion in the Nigerian economy since its creation in 1993. Its ongoing projects include the US$300-million 500-bed Africa Medical Centre of Excellence in Abuja in partnership with King’s College, London, the Afreximbank Africa Trade Centre, also in Abuja, and the Africa Quality Assurance Centre in Shagamu, Ogun.
At the end of 2022, Afreximbank’s total assets and guarantees stood at over US$31 billion, and its shareholder funds amounted to US$5.2 billion. The bank disbursed more than US$86 billion between 2016 and 2022.
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