The African Import Export (AFREXIM) Bank has strategised to breath life into large, medium and small scale businesses across African region through the disbursement of $25 billion loan to operators within next five years.
The bank, said this is part of its strategy to promote intra- African trade, industrialisation and export of goods and services across the region.
AFREXIM President, Dr Benedict Oromah, who sated this at the 24th Annual General Meeting of the Bank, held in Kigali, Rwanda, explained that this has become necessary to cushion the effects of commodity price fluctuation in the continent which often results in recession of most economies of African countries.
He said it is sad to notice that most African countries, lean their economy on one commodity or the other as such once there is shock in the price of such commodity, a whole county’s economy will go into recession.
He said the target of the bank is to strengthen businesses in various sectors of the continent so that they will stand the test of time.
He said among Nigerian companies slated to benefit from the regional bank’s funding initiative is the Dangote group which has perfected plans to sign $1 billion loan agreement with the company.
He said the regional bank, has also perfected plans to build three state of the art industrial Parks for manufacturers in Nigeria as well as to effect other lined up projects aimed at growing businesses in the country.
He said apart from Nigeria, the bank, has invested about $4.2 billion in Egypt especially in helping banks in Egypt to overcome their recent crisis as well as in promoting the Egypt-African trade promotion programme.
He said the bank, had some years back and is still spreading its aid to airline operators, adding that it loaned $2 billion to Kenya Airways to purchase 20 aircrafts and has been a prominent financier of Arik Airline.
Oramah, also said the AFREXIM Bank, has set for itself the target of dismantling through government support anything that causes traffic in trading activities across the region.
He said the bank’s activities in promoting businesses within the region, will extend to Africans in diaspora, noting that this has become necessary because a critical look at their business activities has shown that their Gross Domestic Product has grown as high as $700 million.
He said the bank through its intra -African trade development strategy wants to bring them into African economy.