By Modupe Gbadeyanka
A deal valued at $150 million to enhance economy of African countries has been signed between the African Export-Import Bank (AfreximBank) and the Development Bank of the Republic of Belarus (the DBRB).
The agreement was sealed on Wednesday at the maiden edition of the Belarus-Africa Trade and Investment Forum in Minsk, Belarus.
This deal comes at a time the continent’s biggest economy, South Africa, went into recession and some days after Fitch and Standard and Poor’s downgraded the country’s ratings.
The second biggest economy in Africa, Nigeria, has been in recession since 2016 and is gradually battling to get out of it.
At the signing on Wednesday, it was revealed that the deal will help promote trade financing between Belarus and African countries.
Discussions about this agreement started in 2016 when Chairman of Afreximbank, Mr Benedict Oramah, visited Belarus.
After several months of talks, both banks agreed to strengthen their relationships further by agreeing the $150 million deal with the hopes of a total potential of $800 million.
“The document will be a so-called corridor for Belarusian goods to the African continent. In general, we are setting an ambitious task of increasing trade between Belarus and African countries to $3 billion by 2020.
“During last year’s visit to Belarus, Afreximbank and the Development Bank agreed to reserve certain limits of funds.
“These will be some $400 million from us and the same amount from Belarus. They are needed to boost mutual trade between our countries.
“This first $150 million will be mainly used to purchase Belarusian equipment for the developing African market,” Mr Oramah said.
Adedapo Adesanya