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- ‘Afreximbank Promotes Export Devt Finance in Africa’
‘Afreximbank Promotes Export Devt Finance in Africa’
- By Simon Ugwu
- Published November 2nd, 2009
- MoneyWorld
- Unrated
AFRICA Export-Import Bank (Afreximbank), Egypt, has been in the forefront of promoting Export Development Finance Programme (EDFP) in Africa.
Mr.Jean Louis Ekra, president, African Export-Import (Afreximbank), Egypt stated this recently in Lagos.
According to him, “EDFP is a process of combining credit, risk bearing, twinning, market access as well as advisory services geared towards creating non-commodity export products for sale to a broad range of export markets”
He stated that the objective is aimed at facilitating non-commodity export production, especially export manufacturing targeted at exploiting certain bilateral and multilateral market access opportunities open to Africa; promoting non-commodity export production, especially export manufacturing, targeted at exploiting intra-African trade opportunities, fostering the implementation of regional projects, including tradable infrastructural services, that are likely to foster attainment of objectives and also promoting greater regional economic integration and boosting the technological content of export production and assisting the generation therefrom branded exports that will assist in “de-commoditing” African exports.
The instrument for implementing the EDFP according to him include structured project finance products whereby funding or guarantees are provided to qualifying projects using a financing structure that minimizes construction and operating risks; twining and market access services whereby the bank uses its extensive contacts to foster alliances between a projects and parties with proven and managerial competences as well as market access capacities; and advisory services through which the bank may prepare projects for promoters requiring such services, and assist in raising financing for such projects.
“Under the bank’s qualifying projects, emphasis is on projects promoted by companies that have developed a successful local brand and operation and want to enter the international market; Greenfield projects where there are credible and proven technical partnerships (with equity commitments); and regional projects such as oil pipelines and power projects”, he added.
Mr. Ekra further stated that the bank implements its EDFP using partnership approach which he listed to include African non-African and multilateral development finance institutions(DFIs); African and non-African EXIM banks, African and non-African governments and African and non-African corporates
The Afreximbank chief also stated that its programme aimed at promoting trade and economic diversification. Aside from EDFP, the bank through its leveraging activities, works with financial institutions and investors in the developed world to mobilize resource for the development of African projects through implementation of a number of other programmes namely, syndications programme, special risk programme, investment banking programme, export credit agency (ECA) loan facilitation programme and guarantee programme in support of African governments commitment to project programmes.
Mr.Jean Louis Ekra, president, African Export-Import (Afreximbank), Egypt stated this recently in Lagos.
According to him, “EDFP is a process of combining credit, risk bearing, twinning, market access as well as advisory services geared towards creating non-commodity export products for sale to a broad range of export markets”
He stated that the objective is aimed at facilitating non-commodity export production, especially export manufacturing targeted at exploiting certain bilateral and multilateral market access opportunities open to Africa; promoting non-commodity export production, especially export manufacturing, targeted at exploiting intra-African trade opportunities, fostering the implementation of regional projects, including tradable infrastructural services, that are likely to foster attainment of objectives and also promoting greater regional economic integration and boosting the technological content of export production and assisting the generation therefrom branded exports that will assist in “de-commoditing” African exports.
The instrument for implementing the EDFP according to him include structured project finance products whereby funding or guarantees are provided to qualifying projects using a financing structure that minimizes construction and operating risks; twining and market access services whereby the bank uses its extensive contacts to foster alliances between a projects and parties with proven and managerial competences as well as market access capacities; and advisory services through which the bank may prepare projects for promoters requiring such services, and assist in raising financing for such projects.
“Under the bank’s qualifying projects, emphasis is on projects promoted by companies that have developed a successful local brand and operation and want to enter the international market; Greenfield projects where there are credible and proven technical partnerships (with equity commitments); and regional projects such as oil pipelines and power projects”, he added.
Mr. Ekra further stated that the bank implements its EDFP using partnership approach which he listed to include African non-African and multilateral development finance institutions(DFIs); African and non-African EXIM banks, African and non-African governments and African and non-African corporates
The Afreximbank chief also stated that its programme aimed at promoting trade and economic diversification. Aside from EDFP, the bank through its leveraging activities, works with financial institutions and investors in the developed world to mobilize resource for the development of African projects through implementation of a number of other programmes namely, syndications programme, special risk programme, investment banking programme, export credit agency (ECA) loan facilitation programme and guarantee programme in support of African governments commitment to project programmes.
