Afreximbank President Dr. Benedict Oramah (left) and Dr. Sidi Ould Tah, Director General of BADEA exchange documents following the signing ceremony in Khartoum.
The Arab Bank for Economic Development in Africa (BADEA) and the African Export-Import Bank (Afreximbank) have signed an agreement for a $50 million line of credit granted to Afreximbank by BADEA for the financing of trade operations between Arab and African countries aimed at guaranteeing regular flows of goods and services vital for economic growth.
The line of credit agreement, signed in Khartoum on 28 April by Dr. Sidi Ould Tah, Director General of BADEA, and Dr. Benedict Oramah, President of Afreximbank, was one of two cooperation instruments entered into by the two institutions during a visit to the BADEA headquarters by an Afreximbank delegation led by Dr. Oramah. The second was a memorandum of understanding providing a framework for cooperation in promoting economic and social development of African countries through the funding of private sector projects and trade finance operations.
Speaking after the signing of the two documents, Dr. Ould Tah said that the line of credit, which would finance Arab exports to Afreximbank member states eligible for BADEA funding, marked the first step in cooperation between the two banks in the area of trade finance operations.
According to BADEA, the line of credit, which is part of its programme for financing foreign trade, will target such sectors as energy, industry and agriculture which contribute to sustainable development, improve living conditions and alleviate poverty.
In his statement, Afreximbank President Dr. Oramah said that the signing of the line of credit demonstrated BADEA’s commitment to working with Afreximbank to develop the African continent and promote Arab-Africa trade.
It also demonstrated that BADEA identified with Afreximbank’s efforts to assist African countries to manage the consequence of commodity price shocks, he continued, adding that Afreximbank, working with BADEA, expected to create instruments and programmes to accelerate Arab-Africa trade and investment.
Dr. Oramah said that Afreximbank saw opportunity to work with BADEA to expand its $500 million Egypt-Africa Trade Promotion Programme and to replicate it in other Arab countries. It also hoped to match capital-surplus Arab economies with resource-endowed African countries in order to enable the Arab world and Africa expand their influence and relevance in the global economy.
Afreximbank External Communications