Khartoum, 1 May 2016: – The Arab Bank for Economic Development in Africa (BADEA) and the African Export-Import Bank (Afreximbank) have signed an agreement for a $50 million line of credit granted to Afreximbank by BADEA for the financing of trade operations between Arab and African countries aimed at guaranteeing regular flows of goods and services vital for economic growth.
Afreximbank President Dr. Benedict Oramah (left) makes a point during discussions with Dr. Sidi Ould Tah, Director General of BADEA, in Khartoum.
The line of credit agreement, signed in Khartoum on 28 April by Dr. Sidi Ould Tah, Director General of BADEA, and Dr. Benedict Oramah, President of Afreximbank, was one of two cooperation instruments entered into by the two institutions during a visit to the BADEA headquarters by an Afreximbank delegation led by Dr. Oramah. The second was a memorandum of understanding providing a framework for cooperation in promoting economic and social development of African countries through the funding of private sector projects and trade finance operations.
Speaking after the signing of the two documents, Dr. Ould Tah said that the line of credit, which would finance Arab exports to Afreximbank member states eligible for BADEA funding, marked the first step in cooperation between the two banks in the area of trade finance operations.
According to BADEA, the line of credit, which is part of its programme for financing foreign trade, will target such sectors as energy, industry and agriculture which contribute to sustainable development, improve living conditions and alleviate poverty.
In his statement, Afreximbank President Dr. Oramah said that the signing of the line of credit demonstrated BADEA’s commitment to working with Afreximbank to develop the African continent and promote Arab-Africa trade.
It also demonstrated that BADEA identified with Afreximbank’s efforts to assist African countries to manage the consequence of commodity price shocks, he continued, adding that Afreximbank, working with BADEA, expected to create instruments and programmes to accelerate Arab-Africa trade and investment.
Dr. Oramah said that Afreximbank saw opportunity to work with BADEA to expand its $500 million Egypt-Africa Trade Promotion Programme and to replicate it in other Arab countries. It also hoped to match capital-surplus Arab economies with resource-endowed African countries in order to enable the Arab world and Africa expand their influence and relevance in the global economy.
Afreximbank President Dr. Benedict Oramah (left) and Dr. Sidi Ould Tah, Director General of BADEA exchange documents following the signing ceremony in Khartoum.
Media Contact: Obi Emekekwue (oemekekwue@afreximbank.com; Tel. +202-2456-4238)
——–
Follow us on Twitter: @Afreximbank
Like us on Facebook: Afreximbank
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, Afreximbank has approved almost $35 billion in credit facilities for African businesses, including about $4.5 billion in 2014. Afreximbank is headquartered in Cairo. For more information, visit: www.afreximbank.com