Afrexim Bank, Heirs Holdings sign $600m facility to increase energy investments

The African Export-Import Bank (Afrexim) and Heirs Holdings have signed a $600 million financing facility to help increase the energy investments made across Africa.

At present, Heirs Holdings has investments across Africa in financial services, resources, real estate and hospitality and power sectors.

Both entities signed the agreement on Tuesday at the ongoing Intra-Africa Trade Fair holding in Cairo, Egypt.

“The proceeds of the facilities will assist the Heirs Holdings Group vision of creating a dynamic resource-based division, focused on ensuring value creation occurs on the African continent and that value chains are developed, that directly benefit the broader African economy and consumer,” a statement by Heirs Holdings read.

Commenting at the ceremony, Benedict Oramah, Afrexim president who signed on behalf of the bank, said that the investment by Heirs Holdings would play a key role in addressing some of the fundamental challenges that have affected the power and energy sectors in Africa.

“A world-class energy sector is fundamental to the sustainable growth of businesses in Africa. If we do not deal with these basic matters, growth of trade and exports will always be limited.”

Tony Elumelu, Heirs Holdings chairman, said: “We are delighted to be partnering with Afrexim. The Bank continues to play a critical role in the economic and social development of the continent. Together, we illustrate that Africa can create world-class institutions, which are capable of successfully making the long-term investments necessary for Africa’s economic transformation and catalyse the enabling environment that will unleash Africa’s potential.”