|Afreximbank President Jean-Louis Ekra (Left) exchanges documents with Khadim Ba, Managing Director of Locafrique, following the signing of the facility agreement at Afreximbank’s Cairo Headquarters|
Dakar-based leasing company Locafrique Senegal is the beneficiary of a 25 million Euro dual tranche credit facility arranged by the African Export-Import Bank (Afreximbank) aimed at increasing support to the Senegalese agricultural sector.
The first tranche of the facility, amounting to 20 million Euros, will enable Locafrique finance the purchase and importation of agricultural equipment to be leased to its clients involved in agricultural activities and non-agricultural equipment for lease to clients involved in transportation, manufacturing, construction, energy and industry.
The company will use Tranche II to purchase and discount qualifying receivables from clients under a factoring operation.
Speaking during the signing ceremony for the facility at the Afreximbank Headquarters in Cairo, Jean-Louis Ekra, President of the Bank, said that the decision to extend the facility to Locafrique was part of the strategic objective of the Bank to contribute to the promotion of factoring in Africa.
“This facility helps to bring much-needed support to SMEs in Senegal as direct exporters in the supply chain and ensures that agriculture is commercialised as a business,” stated the President. “It would enable Senegalese growers to shift from traditional manual agriculture to intensive industrial production, thereby improving productivity, efficiency and quality.”
Also speaking, Khadim Ba, Managing Director of Locafrique, expressed appreciation to Afreximbank for its support to his company.
Afreximbank originated and arranged the club of lenders for the facility, including Banque Atlantique which is participating in the two tranches in an amount of $7 million. The leasing tranche is secured by a guarantee from the United States Agency for International Development for up to 7.5 million Euros.
Manal Mounir Hendy