Friday, 12 February 2016

News Release: Afreximbank President Says Increased African Participation In Extractive Sector Key To Economic Transformation

Afreximbank President Dr. Benedict Oramah addressing guests at the reception organized by Orion Group during the International Petroleum Week in London



Africans must increase their participation in the continent’s natural resource sectors in order to boost the amount of rent accruing to the continent from its abundant resources, create employment and heighten the developmental impact on national economies, Dr. Benedict Oramah, President of the African Export-Import Bank (Afreximbank), said in London yesterday.
“It is mind boggling for a continent that accounts for more than 10 per cent of total global oil reserves to only receive less than 3 per cent of the over $3 trillion global oil revenue,” said Dr. Oramah at a reception organized by the Orion Group during the International Petroleum Week.
He added that although Africa accounts for about 50 per cent of global gold production, its export receipts from the precious metal amounted to less than 4 per cent of the more than $300 billion global gold export earnings.
Recognising the urgent need to address this disparity, Afreximbank was working to support the emergence of strong African Champions to lead the economic transformation of the continent, said the President who added that the Bank had designed a special African Content Support Programme to facilitate the active involvement of African entities in the natural resource supply chains across the continent.
That the programme provides financing to African entities in their bidding, acquisition of concessions or service contracts in key extractive industries and participation in the trading of the commodities, he said.
Commending the Orion Group for being the largest wholly-owned African oil trading company, the President said that the company was an example of an African-owned entity making a big difference, adding that that was why Afreximbank had extended support amounting to some $1 billion to its operations in Africa through the Bank’s syndicate partners.
Afreximbank’s other recent financing transactions in the natural resources sector include a $663-million syndicated reserve base lending facility for Eroton for the acquisition of an oil mining lease in Nigeria and a $65-million facility to El Sewedy Electric for the purchase of payment instruments.
Manal Mounir Hendy
Associate
External Communications

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