Afreximbank, KEXIM sign MOU; Agree $100 million facility to boost Korea-Africa trade

Categories: Press Releases

Seoul, 26 October 2016: – The African Export-Import Bank (Afreximbank) and the Export-Import Bank of Korea (KEXIM) today in Seoul entered into a memorandum of understanding (MOU) expected to inject $100 million to support trade between Africa and South Korea.

Under the terms of the MOU signed by Afreximbank President Dr. Benedict Oramah and his KEXIM counterpart, Dr. Lee Duk-Hoon, KEXIM will make available a credit line of up to $100 million to Afreximbank to support trade transactions between South Korea and the African continent as part of a commitment by the two institutions to cooperate in matters of common interest.

Afreximbank and KEXIM will also explore the possibility of establishing other financing schemes to promote trade between South Korea and Africa.

Speaking during the signing ceremony, Dr. Oramah described the line of credit as very timely, given Afreximbank’s current focus on financing the import of investment goods to accelerate the structural transformation of African economies.

“We look forward to using the funding to pursue the urgent needs of our continent,” he said.

Dr. Lee, on his part, noted that in spite of current economic challenges facing most African economies, the growth prospects for the continent remained positive. He stressed the need for the two institutions to deepen their collaboration in order to boost trade and investment relations between South Korea and Africa.

Established in 1976, KEXIM supports South Korea’s export-led economy by providing loans and financing mega projects, thereby facilitating economic cooperation with other countries and regions.

In 2015, Africa’s imports from South Korea stood at approximately $9.8 billion compared to $13 billion in 2014 while the continent’s exports to South Korea amounted to $5.8 billion in 2015 and $7.9 billion in 2014.

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Media Contact: Obi Emekekwue (oemekekwue@afreximbank.com; Tel. +202-2456-4238)

 

About Afreximbank:

The African Export-Import Bank (Afreximbank) 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. Its two basic constitutive documents are the Establishment Agreement, which gives it the status of an international organization, and the Charter, which governs its corporate structure and operations. Since 1994, it has approved more than $41 billion in credit facilities for African businesses, including about $6.2 billion in 2015. Afreximbank had total assets of $9.4 billion as at 30 April 2016 and is rated BBB- (Fitch) and Baa2 (Moody’s). The Bank is headquartered in Cairo. For more information, visit: www.afreximbank.com