Adedapo Adesanya
By Adedapo Adesanya
The African Export-Import Bank (Afreximbank) and the China Development Bank (CDB) have signed a development-focused agreement that will support the financing of small and medium-sized enterprises (SMEs) across Africa with a $400-million term loan facility.
The agreement was signed by Mr Tan Jiong, President of CDB, and Mr Benedict Oramah, President and Chairman of the Board of Directors of Afreximbank, at the Afreximbank headquarters in Cairo.
In a statement seen by Business Post, this agreement allows Afreximbank to deploy the facility to support African SMEs involved in extra- and intra-African trade and those engaged in the productive sectors in Afreximbank member states.
The facility has a seven-year tenor and will be deployed directly to eligible African SMEs meeting Afreximbank’s requirements or indirectly through local financial intermediaries.
Speaking after the signing, Mr Oramah pointed out that African SMEs continue to struggle to access adequate and affordable financing for growing their businesses and said that the CDB facility would help increase the level of financing available to them.
He added that since Afreximbank was receiving the facility as medium to long-term funding at relatively affordable pricing, the Bank would transfer the financial advantage in pricing and tenor to the end beneficiaries.
“This facility further strengthens the strategic partnership we have developed with the China Development Bank over the last six years, which has seen CDB make three previous interventions in support of our work at Afreximbank.”
“It will also enable our two institutions to achieve our respective mandates and developmental outcomes, which include job creation, increased economic activity, and increased extra-African trade with China,” he added.
