Afreximbank signs MOU to facilitate $200m debt financing for development projects in Anambra

By Cynthia Ezekwe.

The African Export-Import Bank (Afreximbank)  has signed a memorandum of understanding (MOU) with the Anambra State government to ensure collaboration on state  development efforts through the provision of project preparation and advisory service, including a  potential debt financing programme of up to  $200 million.

The MOU was signed by Kanayo Awani, Afreximbank’s executive vice president, Intra-African Trade Bank, and Governor Charles Soludo, during the  Anambra Investment Summit, tagged, “Laying the Foundation for a Prosperous and Smart Mega City”.

Under the terms of the MOU,  the state government will jointly prioritise strategic projects for preparation and funding, collaboratively evaluating each project to formulate a time-bound work programme for effective execution.

Afreximbank will work with the state government to establish bankability for key projects, including the Ikenga Mixed-Use Industrial City, the Anambra Export Emporium and the Akwaihedi Unubi Uga Automotive Industrial Park, as well as any other project agreed upon by the parties.

Afreximbank and the Anambra state government will also conclude all prerequisite actions necessary for securing a financing programme of up to $200 million from Afreximbank and its affiliated entities for the projects contingent upon conclusion of a substantive agreement between the parties.

Additionally,  the MOU provides for the parties to collaborate on trade and investment promotion in Anambra State through the African sub-Sovereign Governments Network (AfSNET) and facilitate the implementation of the African Continental Free Trade Agreement.

The bank will work with the Anambra State Investment Promotion and Protection Agency to provide training and capacity building on trade and investment, undertake investment forums, identify, and prepare strategic trade and investment projects and foster collaboration between sub-sovereign governments in Africa.

The AfSNET network is expected to facilitate direct exchange of information and peer learning from sub-sovereign governments in Africa.

Commenting on the MOU, Awani, who spoke on behalf of Benedict Oramah, president and chairman of Afreximbank’s board of directors, said the bank’s mission aligns seamlessly with Anambra’s industrialization objectives, including its vision for a smart mega city, noting that the bank had identified the emergence of industrial parks and special economic zones as a strategic priority to accelerate Africa’s industrial infrastructure development.

“These facilities not only optimise capital deployment but also drive economies of scale and nurture ecosystem development. They also enable the use of otherwise inaccessible technologies and cutting-edge infrastructure,’’ She noted.

The executive vice president pointed out that innovative partnerships, including public-private partnerships, had emerged as instrumental bridges capable of closing the infrastructure gap that spanned the African continent, adding that the African private sector held immense potential to bolster a wide spectrum of public sector endeavours.

“The Bank, leveraging its fundraising capabilities in Africa’s capital markets, could also raise funds that could be deployed into impactful infrastructure projects in the state using various financing instruments and mechanisms which could be explored with the state government,’’  she added.

Awani also disclosed that Afreximbank’s broader collaboration with Nigeria had been fruitful over the years and had seen the bank invest over $36 billion into the Nigerian economy since its creation in 1993.