The African Export-Import Bank (Afreximbank) is providing $150m for Egyptian factoring companies within 5 years, according to the Managing Director of Intra-African Trade Initiative of Afreximbank Kanayo Awani.
Awani told Daily News Egypt that the funding began this year and will end in 2021.
Awani noted that the bank is very interested in the file of Egyptian factoring companies and provides funding to credit certified factoring companies as an alternative financing tool available to small and medium enterprises in Africa.
She pointed out that Afreximbank has contracted with the Egyptian Factoring Association and is currently studying with Mohamed Gamal Moharam, president of the Egyptian Factoring Association, to provide funding to the association to finance small and medium companies in the Egyptian market.
“The bank has provided $4bn to support current financial and investment activities in the Egyptian market, and the bank has provided Egypt with about $20bn since it was established in 1993,” Awani said. “The bank has renewed $500m this year as a credit line to Egypt to boost inter-African trade. Furthermore, the bank will renew funding again if needed.”
Afreximbank announced at the Africa 2017 summit, held recently in Sharm El-Sheikh, a new loan agreement with the Egyptian Export Development Bank, worth $500m, as additional funding to support export financing for Egyptian businesses in an effort to expand its trade in Africa.
On the sidelines of the summit, the bank also signed a memorandum of understanding (MoU) with Attijariwafa Bank to collaborate on developing a large framework of trade cooperation across Africa.
The MoU allows Attijariwafa International Bank to be able to act as a local administrative agent for Afreximbank through its network in 15 African countries. The two parties also agreed to collaborate on building capacity and sharing information and staff.