Dangote Industries to get $1b Afreximbank Financing for Intra-African Trade
The African Export-Import Bank (Afreximbank) has in Kigali signed agreements to provide financing facilities totaling $1.11 billion to support African entities engaged in intra-African trade, including $1 billion to the African conglomerate Dangote Industries Limited.
The signing ceremonies, held as part of the ongoing activities marking the 24th Annual General Meeting of the Bank, are in support of the Bank’s strategy to facilitate the growth of intra-African trade.
The terms of the MOU with Dangote Industries Limited provides for credit facilities, “which may be granted by Afreximbank to Dangote Industries Limited and its subsidiaries in an aggregate amount of up to one billion dollars”.
The MOU provides for collaboration between Afreximbank 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.
A brief on the MOU says that the utilization of the facility would boost intra-African trade volumes, enhance continental value chains and increase production and export of goods and services across Africa.
A second signing ceremony was for a $100-million facility to Heirs Holdings Limited, a pan-African proprietary investment holding company, 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 energy, financial services, real estate and hospitality.
Also signed during the day was a facility agreement for a $10 million amortising term loan facility to the Development Bank of Rwanda Limited (BRD) to support the development of power and manufacturing projects in the country.
A note on the seven-year facility said that it would finance projects that were in line with Afreximbank’s strategy aimed at promoting industrialization and export development and would contribute to an increase in Rwanda’s electricity generation and consumption, thereby enhancing the growth of the country’s manufacturing and export sectors.
Dr. Benedict Oramah, President of Afreximbank, signed the agreements on behalf of the Bank while Aliko Dangote, President of Dangote Industries Limited; Tony Elumelu, Chairman of Heirs Holdings; and Alex Kanyankole, Chief Executive Officer of BRD, signed on behalf of their respective organisations.