Africa Finance Corporation (www.AfricaFC.org), the leading infrastructure solutions provider on the continent, today announced the successful signing of a US$300 million loan facility agreement with the Export-Import Bank of China (CEXIM). This landmark agreement, signed on the sidelines of the Asian Infrastructure Investment Bank (AIIB) Annual meetings in Egypt, is poised to drive increased trade finance and investment across the African continent, fostering economic growth and development.
The 3-year US$300 million loan facility is a significant development in AFC’s long-standing relationship with CEXIM. The two institutions have collaborated since 2018, with AFC receiving US$400 million in bilateral loans from CEXIM to date. 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, 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.
“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.” said Wencai Zhang, Vice President of CEXIM, “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 between AFC and CEXIM, 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 is committed to delivering unique and effective solutions that benefit stakeholders, uphold standards, and promote sustainable development and economic growth in Africa.
AFC was established in 2007 to be the catalyst for private sector-led infrastructure investment across Africa. AFC’s approach combines specialist industry expertise with a focus on financial and technical advisory, project structuring, project development, and risk capital to address Africa’s infrastructure development needs and drive sustainable economic growth.
Sixteen years on, AFC has developed a track record as the partner of choice in Africa for investing and delivering on instrumental, high-quality infrastructure assets that provide essential services in the core infrastructure sectors of power, natural resources, heavy industry, transport, and telecommunications. AFC has 42 member countries and has invested US$12.7 billion across Africa since inception. www.AfricaFC.org
Founded in 1994, CEXIM is a state-funded and state-owned Chinese policy bank dedicated to supporting China’s foreign trade, investment and international economic cooperation. With the Chinese government’s credit support, the Bank plays a crucial role in promoting steady economic growth and structural adjustment, supporting foreign trade, and implementing the “going-global” strategy.
CEXIM is rated by Standard & Poor’s, Moody’s Investors Service, and Fitch, as A+, A1, and A+ respectively, same as China’s sovereign ratings. By the end of 2022, CEXIM had a total asset of USD 852.45 billion, covering businesses in credit, trade finance, financial market, equity investment, etc… CEXIM has 32 branches, 1 representative office in Hong Kong SAR, and 6 overseas institutions.