The Board of Directors of the African Development Bank Group (www.AfDB.org) has approved a $15 million trade finance package for First Capital Bank (FCB) in Zimbabwe to help bolster intra-African commerce in line with the goals of the Africa Continental Free Trade Area.

The package, comprising a $7.5 million trade finance line of credit and a $7.5 million transaction guarantee, is expected to catalyse about $146 million in trade over the next three years.

The line of credit will provide the much-needed hard currency financing to support FCB to close its trade finance gap and expand its trade finance support for SMEs and local corporates in Zimbabwe, a transition country. The transaction guarantee will provide a 100% guarantee to international confirming banks (CBs) for the non-payment risk taken on FCB’s trade finance transactions conducted on behalf of SMEs, and women-led businesses. The approval came on 30 April.

Mr Tapera Mushoriwa, FCB’s CEO, said, “We are thrilled about the growth prospects that this $15 million facility will unlock for the business communities driving our economy. The package aims to bolster our trade finance services in Zimbabwe, across Africa, and globally.”

Moono Mupotola, African Development Bank Zimbabwe Country Manager, underscored the strategic importance of the facility. She said, “The facility is expected to support the importation of strategic commodities and promote the integration of Zimbabwe’s economy into regional and global trade markets, which are essential for the country’s growth.”

Distributed by APO Group on behalf of African Development Bank Group (AfDB).

Media Contact:
Olufemi Terry
African Development Bank Group
media@afdb.org

Technical Contact:
Samson Kasuka
Senior Investment Officer – Trade Finance
S.Kasuka@afdb.org

About the African Development Bank Group ’s trade finance instruments:
The Bank Group’s Trade Finance lines of credit, with a maximum tenor of 3.5 years, extend vital financial support to banks for facilitating trade transactions in Africa, including imports, exports, pre-shipment, and working capital. Through its Transaction Guarantee, the Bank Group leverages its “AAA” rating to provide up to a 100% guarantee to confirming banks for the non-payment risk they take on African local banks’ trade finance transactions, thereby reducing the need for cash collateral. More information is available on the Bank Group’s web site here (https://apo-opa.co/4dRT5mO).

About the African Development Bank Group:
The African Development Bank Group is Africa’s premier development finance institution. It comprises three distinct entities: the African Development Bank (AfDB), the African Development Fund (ADF) and the Nigeria Trust Fund (NTF). On the ground in 41 African countries with an external office in Japan, the Bank contributes to the economic development and the social progress of its 54 regional member states. For more information: www.AfDB.org

African Export – Import Bank (Afreximbank) (www.Afreximbank.com) has approved a US$ 30 Million financing facility to Joyau Des Caraibes Limited (JDC); the Caribbean subsidiary of ORA Developers, for the expansion of Silversands Hotel in St. Georges, Grenada.

Silversands Hotel is part of a luxury chain of hotels owned by ORA Developers, an Egyptian firm renowned for designing and developing luxury lifestyle destinations in unique locations around the world. Grenada is a major touristic hub, that attracts over 2.5 million visitors each year. The facility will be utilised for the construction of additional rooms, restaurants, retail stores and other recreational facilities aimed at boosting tourism revenues.  

While commenting on the deal, Prof. Benedict Oramah, President, and Chairman of the Board of Directors of Afreximbank said: “We are pleased to have reached yet another significant financial close in the Caribbean. This financing, expected to expand hotel facilities and ancillary businesses, will boost the tourism industry, create jobs, and develop the economy of Grenada. It underscores our commitment to fostering shared growth and prosperity among Africans in geographic Africa, the Caribbean, and beyond. This project, promoted by an African developer, further validates the Bank’s strategy of fostering deeper Afri-Caribbean investment relations.”

Mr. Naguib Sawiris, Chairman and CEO of ORA Developers said: “We are pleased to be a part of this south-to-south financing agreement with Afreximbank which will lead to accelerated expansion of Silversands brand in the Caribbean region. I thank Prof. Oramah and his team for their part in this initiative for growth in this important touristic region.”

Under its Diaspora strategy, Afreximbank has spearheaded numerous trade and investment missions to the Caribbean Islands, fostering strong business-to-business and business-to-government relations. These efforts have significantly reinforced two-way investments between Africa and the Caribbean, stimulating economic opportunities for both regions. These ties are expected to enhance additional linkages in the future such as direct movement of people and increased economic activities.

Distributed by APO Group on behalf of Afreximbank.

Media Contact:
Vincent Musumba
Manager, Media Relations
Email: press@afreximbank.com
Tel: +20 2 24564100 /1/2/3
Mobile: +201030121123

About Afreximbank:
African Export-Import Bank (Afreximbank) is a Pan-African multilateral financial institution mandated to finance, facilitate and promote intra and extra-African trade. For over 30 years, the Bank has been deploying innovative instruments to deliver financing and ancillary solutions that support the transformation of the structure of Africa’s trade, accelerating industrialization, intra-African trade, thereby boosting economic expansion in Africa and for Africans around the world. A stalwart supporter of the AfCFTA, Afreximbank has in partnership with the African Union Commission and AFCFTA Secretariat launched a Pan-African Payment and Settlement System (PAPSS) that was adopted by the African Union (AU) as the payment and settlement platform to underpin the implementation of the Free Trade Agreement. The AFCFTA Secretariat and the Bank have created a USD 10 billion Adjustment Fund to support countries to effectively participate in the AfCFTA.

At the end of December 2023, Afreximbank’s total assets and guarantees stood at over US$37 billion, and its shareholders funds amounted to US$6.1 billion. The Bank disbursed more than US$104 billion between 2016 and 2023. Afreximbank has investment grade ratings assigned by GCR (international scale) (A), Moody’s (Baa1), Japan Credit Rating Agency (JCR) (A-) and Fitch (BBB). Afreximbank has evolved into a group entity comprising the Bank, its impact equity fund subsidiary called the Fund for Export Development Africa (FEDA), and its insurance management subsidiary, AfrexInsure, (together, “the Group”). The Bank is headquartered in Cairo the Capital of Egypt.

For more information, visit: www.Afreximbank.com

Egypt is looking at the possibility of merging its petroleum and renewable energy ministries, creating an integrated Ministry of Energy to streamline industry operations and regulations.

Mohamed Fouad, CEO of Egypt Oil&Gas, Secretary General of the Egyptian Gas Association and Marketing&Communications Committee Chairman of the International Gas Union, told an audience at the Invest in African Energy (IAE) Forum in Paris that the merger will “make discussions and open dialogue with international companies much more efficient.”

The merger comes in response to changing dynamics within Egypt’s energy industry, as the country aims to increase the penetration of renewable energy in its gas-dominated energy mix. Oil and gas companies are also turning to renewable energy systems to support sustainable operations in the country, highlighting a need to enhance certainty regarding regulatory approvals in the industry.

According to Fouad, “We are increasing and putting a lot of investments in renewable energy and clean energy, while investing a lot within nuclear energy. We see the dynamics of creating a balance in our energy mix to be in favor of the country and the region.”

Various North African countries are prioritizing an integrated energy mix – one that comprises a balance of hydrocarbon and renewable energy resources. In Morocco – a major gas and renewable energy producer – incorporating both renewables and gas in the energy mix is critical for developing baseload power while supporting a transition to a more sustainable future.

Adonis Pouroulis, CEO of Chariot Energy Group, stated that, “Morocco is the leader in Africa in renewable energy, but to support baseload power, you need gas and you need hydrocarbons. With hydrocarbons as your baseload, you can be more relentless in new technologies going forward because we will need all forms of energy to not only power Africa but the rest of the world.”

To support multi-faceted energy development, both Egypt and Morocco are prioritizing investments in infrastructure. According to Fouad, “You will not have more energy investments if you do not have infrastructure. Reliable, sustainable and cost-efficient infrastructure adds value.”

Morocco is spearheading cross-border infrastructure development with the construction of the Nigeria-Morocco Gas Pipeline. The northern section survey of the pipeline has begun, serving as a critical step forward in the development of the $25 billion project. The 5,600km pipeline will link Nigeria’s gas fields to international markets via Morocco, traversing 11 West African countries. Pouroulis believes that “the Nigeria-Morocco Pipeline is very important,” as it showcases the success of cross-border collaboration and infrastructure development in Africa.

Meanwhile, Libya aims to increase production to two million barrels per day within the next three years, with 45 greenfield and brownfield projects currently in the pipeline. As the market grows, the demand for insurance services has also increased. Delivering a presentation ahead of the North African panel discussion at IAE 2024, Zakaria Albarouni, General Manager at Al Baraka Insurance, stated that “Our energy offerings are tailored to the needs of both onshore and offshore projects. We provide a comprehensive coverage of onshore facilities and offshore platforms. Our comprehensive engineering policies ensure every phase from groundwork to completion is covered against unforeseen events.” 

Distributed by APO Group on behalf of Energy Capital&Power.