Afreximbank Agrees $600m line credit to Zimbabwe’s Reserve Bank

Approved over $51bn credit since 1999

The African Export-Import Bank (Afreximbank) yesterday, entered into a memorandum of understanding (MOU) to provide a $600-million line of credit to the Reserve Bank of Zimbabwe (RBZ).
Daily Times Nigeria recalls that since 1994, the bank had approved more than $51 billion in credit facilities for African businesses, including about $10.3bn in 2016.

A statement made available to Daily Times Nigeria from the bank revealed that Afreximbank President Dr. Benedict Oramah signed the MOU on behalf of Afreximbank during a ceremony in Harare, while Dr. John Mangudya, Governor of RBZ, signed for his institution.
According to the terms of the MOU, the line of credit will support RBZ in the financing of trade-related transactions and projects in Zimbabwe.
The financing would be supported by Zimbabwe’s export proceeds, including gold and other mining exports.
The MOU states that the line of credit is expected to boost trade into and out of Zimbabwe and will promote the country’s economic development.
The signing ceremony was held on the sidelines of the 114th meeting of the Board of Directors of Afreximbank, which ended in Harare yesterday.

The African Export-Import Bank (Afreximbank) is the foremost pan-African multilateral financial institution devoted to financing and promoting intra- and extra-African trade. The Bank was established in October 1993 by African governments, African private and institutional investors, and non-African investors.

Afreximbank’s two basic constitutive documents include the establishment agreement, which gives it the status of an international organization, and the Charter, which governs its corporate structure and operations.

Afreximbank has total assets of $11.7bn as at 31 December, 2016; and is rated BBB+ (GCR), Baa1 (Moody’s), and BBB- (Fitch). The bank is headquartered in Cairo, Egypt.
 

Bonny Amadi