The African Export-Import Bank (Afreximbank) and the Export-Import Bank of China (CEXIM) have inked a $600 million loan agreement to support loans and trade finance transactions. The agreement was signed by Wencai Zhang, Vice President of CEXIM, and George Elombi, Executive Vice President of Afreximbank, in Beijing on October 17, witnessed by Shengjun Ren, President of CEXIM, and Benedict Oramah, Afreximbank President and Chairman of the Board of Directors.
- Purpose of the Loan:
- The loan aims to facilitate and finance trade and economic cooperation between the member states of Afreximbank and the People’s Republic of China (PRC).
- It also seeks to promote financial cooperation between Africa and China, strengthening economic ties.
- Significance of the Agreement:
- Benedict Oramah highlighted the auspicious timing of this facility’s signing, coinciding with the 10th anniversary of the Belt and Road Initiative (BRI), signifying the growing cooperation between China and Africa.
- He emphasized Afreximbank’s commitment to leveraging financial resources in Africa, particularly in catalyzing trade financing between Africa and China, facilitating the flow of goods, capital, and technology.
- Goals of Afreximbank’s 6th Strategic Plan:
- Oramah stated that Afreximbank’s 6th Strategic Plan (2022-2026) focuses on expanding its role in African trade finance and sees numerous collaboration opportunities across the continent.
- Working with partners like CEXIM, Afreximbank aims to support China-Africa Cooperation and boost Africa’s export manufacturing capacity.
- CEXIM’s Perspective:
- Shengjun Ren, President of CEXIM, viewed the agreement as a concrete step in fulfilling CEXIM’s responsibilities in promoting high-quality Belt and Road Initiative cooperation and executing programs under the Forum on China and Africa Cooperation framework.
- This collaboration signifies an essential third-party market cooperation initiative by CEXIM.
Conclusion: The $600 million loan agreement between Afreximbank and CEXIM is a significant milestone in fostering economic cooperation between Africa and China. This initiative is aligned with the Belt and Road Initiative and holds the potential to substantially enhance trade financing, promoting economic growth and development in African countries. The agreement reflects the commitment of both institutions to furthering China-Africa economic cooperation.