The China Development Bank (CDB) in Cairo has signed a development-focused agreement to provide the African Export-Import Bank (Afreximbank) with a $400 million term loan aimed at supporting small and medium-sized enterprises (SMEs) across Africa.
The agreement was formalized by Tan Jiong, president of CDB, and Benedict Oramah, president and chairman of the Board of Directors of Afreximbank, during a ceremony at the Afreximbank Headquarters in Cairo.
The facility will enable Afreximbank to strengthen African SMEs engaged in both extra- and intra-African trade, as well as those operating within the productive sectors of its Member States.
With a seven-year tenor, the loan will be deployed either directly to eligible African SMEs that meet Afreximbank’s criteria or indirectly through local financial intermediaries. This approach ensures broad access and maximizes the impact of the funding across the continent.
Oramah noted the ongoing challenges African SMEs face in securing sufficient and affordable financing for growth. He stated that the CDB facility would greatly enhance the availability of funding for these enterprises.
He further explained that since Afreximbank was obtaining the facility as medium to long-term funding at relatively favorable rates, the Bank would pass on these financial benefits in terms of pricing and tenor to the end beneficiaries.
“This facility further strengthens the strategic partnership we have developed with the China Development Bank over the last six years, which has seen CDB make three previous interventions in support of our work at Afreximbank,”
President Oramah said, “It will also enable our two institutions to achieve our respective mandates and developmental outcomes, which include job creation, increased economic activity and increased extra-African trade with China.”
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