Afreximbank proving Africa can do something meaningful –President

…BoI, Dangote get $1.4bn loan
President Muhammadu Buhari has said that the success story of African Export Import Bank (Afreximbank) underscores the fact that the African continent can do something meaningful for itself.

Buhari, who declared open the bank’s 25th Annual General Meeting of Shareholders in Abuja at the weekend in his speech, pointed out that ‘‘25 years ago, I am sure there would have been doubts as to whether Africans can truly come together to build something meaningful. The success of Afreximbank in its 25 year journey has answered this question conclusively.’’

The President also said that he was pleased to hear firsthand from board members of Afreximbank positive impact the Bank has made to date.

He said, “I was particularly encouraged by their plans for inclusive growth and sustainable development in Africa’s economies. This was the vision of the bank’s founding fathers.”

He then congratulations the management and Board of Directors of Afreximbank for their dynamism and tenacious leadership without which the feats so far achieved would not have been possible.

Buhari also commented on the African Continental Free Trade Agreement (AfCFTA), which Nigeria is yet to sign, stressing that significant progress has been made in consultations with key stakeholders across our six geo-political zones of the country.

He said, “The responses have been diverse as would be expected. However, one clear message has emerged which is that any trade agreement must be both ‘free’ and ‘fair’.

‘‘No nation can survive on its own. Trading is important and the terms of trade are important. Therefore, there is a need to ensure our national interests as well as our regional and international obligations are balanced.”

President Buhari also witnessed the signing on Saturday of the $1.4billion loan facilities to two Nigerian entities which was one of the high points of the Annual General Meeting and 25th Anniversary of Afreximbank

The syndicated loan to the Bank of Industry (BOI) and Dangote Group is geared towards promoting the Nigerian business sector.

Managing Director/CEO of BOI, Mr. Olukayode Pitan, signed the $750 while Alhaji Aliko Dangote, signed the $650 million facility for the group.

The BOI facility has three-year term with a one year moratorium period, and a repayment period in equal quarterly installment after the moratorium period. Besides, the interest on the loan would be paid quarterly through the tenure of the loan.

It is the highest from Afreximbank to any Nigerian financial institution.

The Dangote Group $650 million loan which has seven years tenure, inclusive of a five year moratorium, with interest to be paid quarterly on the outstanding principal throughout the moratorium period was for the attainment of ongoing 600,000 barrels per day capacity Dangote Refinery being built in Lagos.

The facility would be repaid over two years in four equal parts on a yearly installment basis after the moratorium period.

For his part, President and Chairman Board of Directors, Afreximbank, Dr. Benedict Oramah, said that the bank in collaboration with the African Union (AU), as part of continuous efforts to tackle the challenges of access to trade information in Africa launched an initiative to host intra Africa Trade Fairs to hold once every two years.

The first of such trade fairs, according to Oramah, has been slated to hold in Cairo, Egypt by December this year.

Earlier, he, noted that the work is not done yet judging from the $120 billion trade finance gap that needs to be closed, that an annual $93 billion trade infrastructure gap is required to be filled; a global trade share, at 3 percent, that needs to be raised; and Intra-African trade that is still far below ‘‘our aspirations.’’

“We will be celebrating a continent that has responded to the realities of global trade relations to become more integrated, with intra-African trade rising to more than 50% of the continent’s total trade; I see an Africa in full control of the value chains of its key commodity endowments,’’ the Afrexim bank boss added.

The Daily Times recalls that the African Export Import Bank was established in Abuja, Nigeria in October, 1993 by African Governments, African private and institutional investors as well as non-African financial institutions and private investors for the purpose of financing, promoting and expanding intra-African and extra-African trade. The Bank has its headquarters in the Egyptian capital, Cairo.