Afreximbank President Benedict Oramah (L) and NBE Chairman Hesham Okasha signing the agreement for the $300-million facility in Cairo. (Photo: Afreximbank)
The African Export-Import Bank (Afreximbank) has provided the largest public sector bank of Egypt a $300 million loan as an industrialisation support facility, to be repaid over three years, Afreximbank statement read Saturday.
President of Afreximbank, Benedict Oramah, and chairman of National Bank of Egypt, Hesham Okasha, signed the financing facility agreement on behalf of their respective institutions during a ceremony held at the NBE's headquarters in Cairo on 27 April.
The loan is expected to support Egypt’s small and medium-size enterprises (SMEs) initiative, launched by President Abdel-Fattah El-Sisi in 2016 to provide EGP 5 billion in loans to medium-sized companies in the industrial and agricultural sectors.
According to the statement, since inception in 1993, Afreximbank had approved credit facilities totaling $13.8 billion to Egyptian entities, representing 33.7 per cent of the total facilities approved by the bank.
Over the same period, the bank confirmed and issued guarantees and letters of credit exceeding $2 billion on behalf of Egyptian entities.
In February last year, the Central Bank of Egypt (CBE) signed a $500 million trade finance facility agreement with Afreximbank to allow Egyptian importers to buy strategic and key industrial products.
The agreement was part of a $3.5 billion financing programme approved by Afreximbank in December “aimed at enabling the bank’s member-countries to adjust to current adverse economic shocks, especially commodity price and terrorism-induced ones,” the bank said.
Afreximbank currently holds an outstanding credit portfolio of about $4.2 billion for Egypt.