On the margins of the African Union-European Union Summit, the African Export-Import Bank (Afreximbank) and the European Investment Bank (EIB) on Thursday in Abidjan, entered into a line of credit agreement amounting to €10 million, granted by EIB to Afreximbank.
According to a statement on thursday, the facility was aimed at financing trade-related long-term productive investments by private sector entities or commercially operated public sector entities in Afreximbank member countries that are also signatories of the Cotonou Agreement.
The seven-year loan would finance trade-related investments and projects in Africa, with particular emphasis on Small and Medium-Sized Enterprises (SMEs) engaged in export manufacturing.
It is expected to enhance intra-African trade, Africa’s value-added exports, as well as trade with the European Union, thereby strengthening trade as a key driver of economic growth and competitiveness.
“The facility agreement will add strong impetus to our drive for expanded intra-African trade and for the promotion of industrialisation and export manufacturing across Africa,” the President of Afreximbank, Dr. Benedict Oramah said.
Speaking during the signing ceremony, EIB’s Vice-President responsible for Development, Ambroise Fayolle said the agreement would help develop EU-African trade relations and, crucially, provide much-needed jobs across the continent.