Adedapo Adesanya
By Adedapo Adesanya
Africa Finance Corporation (AFC) has secured a $300 million loan from the Export-Import Bank of China (CEXIM) to drive increased trade finance and investment across the African continent, fostering economic growth and development.
The infrastructure solutions provider on the continent announced the successful signing of the landmark agreement on the sidelines of the Asian Infrastructure Investment Bank (AIIB) Annual meetings in Egypt.
The 3-year credit facility is a significant development in AFC’s long-standing relationship with CEXIM. The two institutions have collaborated since 2018, with AFC receiving $400 million in bilateral loans from CEXIM to date.
According to a statement, the loan will provide critical financing to support trade finance and investment in Africa, further facilitating the flow of goods and services between Africa and China.
Commenting on the partnership, Mr Sanjeev Gupta, Board Member and Head of Financial Services for Africa Finance Corporation, said, “This partnership with CEXIM is a significant milestone for AFC as we continue to expand our footprint in the Asian capital markets.
“It significantly increases our capacity to provide trade finance solutions on the continent, promoting international trade and economic diversification while reinforcing the strong economic ties between Africa and China.”
On his part, Mr Wencai Zhang, Vice President of CEXIM said, “CEXIM attaches great importance to the China-Africa financial cooperation and AFC is an important partner for us. Over the past few years, CEXIM has provided loans to AFC to enhance the bilateral trade and investment between China and Africa.
“This new project has elevated our bilateral cooperation to a new level and will further enhance China-Africa trade and economic cooperation through the financial support of our two institutions.”
Through the partnership, AFC and CEXIM noted that Africa’s infrastructure challenges can be addressed more efficiently. The need for regional institutions to collaborate and bring transparency, answerability, and focus is critical to ensure that global standards of governance and sustainability are met.
AFC said it is committed to delivering unique and effective solutions that benefit stakeholders, uphold standards, and promote sustainable development and economic growth in Africa.
