Afreximbank allocates USD3bn to Egyptian companies

Thursday 12 July 2018 06:37 PM

Benedict Okey Oramah
Benedict Okey Oramah

Nigaria - By Mohmed Salem
African  Export-Import Bank ( Afreximbank) allocated USD3bn facility to support Egyptian companies operating in African countries.  
" Beneficiaries of the facility include companies working in petroleum, foodstuff, infrastructure and communications, namely Orascom and Al-Sewedy," chairman of Afreximbank Dr. Benefict Okey Oramah told Al-Mal newspaper on the sidelines of the annual 25th meeting of the bank, expecting several funding protocols to be signed with Egyptian companies in the upcoming period.
Afreximbank extended USD3.7bn financing to the Central Bank of Egypt, all of which has been repaid with late May's last installment amounting to USD500mln.
Afreximbank mulls injecting USD25bn to bolster inter-African trade late 2021, as a pertinent treaty  has been signed off back in March, according to Oramah.
At the opening session of the meeting, president of South Africa Cyril Ramaphosa expressed his country's hope to allure more nations into joining the treaty which helps free  trade to flow among Africa's 55  countries, adding that inter-trading volume is less than 16% of African countries trading  with the world, very low percentage as compared with other economic alliances such as the European Union.
While stressing the need to work hard in order to create more stable economic conditions and stir higher growth, he called on African nations to tap dialogue as a means of resolving conflicts.
Back in early June, deputy chairman of Afreximbank Amro Kamel said that the bank is studying injecting a USD1bn facility into a number of Egyptian companies and banks, as a loan worth USD200mln has been extended to Telecom Egypt.
Among Afreximbank's Egyptian beneficiaries are  the Egyptian General Petroleum which is due to get USD200mln loan, El-Sewedy Cables Company, and a number of Holding companies. Also, the bank seeks to activate a cooperation protocol worth 500mln with the Export Development Bank of Egypt with the aim of  supporting intra-Africa trade.