The Africa Finance Corporation, the leading infrastructure solutions provider on the continent, on Tuesday announced the successful signing of a US$300m loan facility deal with the Export-Import Bank of China on the sidelines of the Asian Infrastructure Investment Bank (AIIB) Annual meetings in Egypt.
The three-year loan facility, described as a significant development in AFC’s long-standing relationship with CEXIM, it is epected, would drive increased trade finance and investment across the African continent, fostering economic growth and development.
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, while cementing the partnership between both institutions since 2018. Since then, the AFC has received US$400m in bilateral loans from CEXIM.
Commenting on the partnership, Sanjeev Gupta, Board Member and Head of Financial Services at the corporation described the partnership as “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.
For Wencai Zhang, Vice President of CEXIM, the bank “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.
“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, AFC said in a statement that Africa’s infrastructure challenges can be addressed more efficiently, noting 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.”