Afreximbank, Anambra sign agreement on potential $200m debt financing

The African Export-Import Bank (Afreximbank) says it has signed a memorandum of understanding (MOU) with the Anambra state government to collaborate on state development efforts through the provision of advisory services. 

The MoU also includes a potential debt financing programme of up to $200 million, the bank said in a statement on Friday.

Afreximbank said agreement was reached at the just concluded 2023 Anambra Investment Summit, themed, ‘Laying the Foundation for a Prosperous and Smart Mega City’.

Charles Soludo, governor of Anambra, and Kanayo Awani, Afreximbank’s executive vice-president, Intra-African Trade Bank, signed the deal during the summit.

The statement noted that, under the terms of the MoU, Afreximbank and the state government will jointly prioritise strategic projects for preparation and funding, collaboratively evaluating each project to formulate a time-bound work programme for effective execution. 

“Afreximbank will work with the state government to establish bankability for key projects, including the Ikenga Mixed-Use Industrial City, the Anambra Export Emporium and the Akwaihedi Unubi Uga Automotive Industrial Park, as well as any other project agreed upon by the parties,” the bank said.

“Afreximbank and the Anambra State Government will also conclude all prerequisite actions necessary for securing a financing programme of up to $200 million from Afreximbank and its affiliated entities for the projects contingent upon conclusion of a substantive agreement between the parties.

“In addition, the MOU provides for the parties to collaborate on trade and investment promotion in Anambra State through the African Sub-Sovereign Governments Network (AfSNET) and facilitate the implementation of the African Continental Free Trade Agreement.”

The bank said promised to collaborate with the Anambra State Investment Promotion Agency to offer trade and investment training, conduct investment forums, identify strategic projects, and promote African government collaboration.

‘AFREXIMBANK READY TO SUPPORT ANAMBRA’

In her address, Awani, representing Benedict Oramah, Afreximbank’s president, said the bank’s mission aligned seamlessly with Anambra’s industrialisation objectives — including its vision for a smart mega city.

She said the bank had identified the emergence of industrial parks and special economic zones as a strategic priority to accelerate Africa’s industrial infrastructure development.

“These facilities do not only optimize capital deployment but also drive economies of scale and nurture ecosystem development. They also enable the use of otherwise inaccessible technologies and cutting-edge infrastructure,” she said.

“Just as we have championed the transformative potential of industrial parks and special economic zones across Africa through public and private sector collaboration, committing over US$1.5 billion so far to the realization of these projects, Afreximbank is ready to support Anambra State, as it is doing in Ogun and Abia States (Enyimba Industrial City), to promote similar projects here.”