KALONDE NYATI, Kigali, Rwanda
THE African Export-Import (Afrexim) Bank has signed a US$1 billion financing facility with African conglomerate Dangote Industries Limited to help the group expand its businesses on the continent.
Under the agreement, Dangote Industries Limited, which has invested US$450 million in a cement plant in Zambia, the facility will boost intra-African trade volumes.
The deal will also enhance continental value chains, increase production and export of goods and services across Africa, according to a statement issued by Afrexim communications unit. The signing was done on the sidelines of the 24th annual general meeting of the bank.
This is part of Afrexim Bank’s support strategy to facilitate the growth of intra-African trade.
“The terms of the MoU with Dangote Industries Limited provide for credit facilities, “which may be granted by Afrexim Bank to Dangote Industries Limited and its subsidiaries,” the statement reads.
The MoU also provides for collaboration between Afrexim Bank and Dangote Industries Limited in respect of proposed funding of transactions, which could involve the provision of short- and long-term liabilities for trade-related projects in Africa.
Afrexim Bank has also signed a US$100 million facility with Heirs Holdings Limited, a pan-African proprietary investment holding company, which also owns United Bank of Africa (UBA) to further support its cross-border investment programme.
The facility brief notes that Heirs Holdings has a portfolio of investments in key sectors in 20 African countries including Zambia, among them energy, financial services, real estate and hospitality.