Afreximbank, NEXIM to raise $50m for investment

African Export-Import Bank (Afreximbank) and Nigeria Export-Import Bank (NEXIM) have agreed to mobilise $50 million for local investment.

The $50 million will come in form of project preparation funds for investments.

A statement from NEXIM Bank on Wednesday said both development banks have entered into a Memorandum of Understanding (MoU) to establish “a Joint Project Preparation Fund that will provide early project preparation financing and technical support services to public and private sector entities operating in Nigeria’s trade sector.”

Under the terms of the MoU, Afreximbank and NEXIM “will collaborate through the Joint Project Preparation Fund to unlock investments into sectors such as export manufacturing, agro-processing, solid minerals development and beneficiation services, as well as healthcare, Information and Communications Technology, and creative industries.”

The Joint Project Preparation Fund will support public and private sector investors by providing technical and financial support services that will result in a steady pipeline of well-structured, bankable projects that Afreximbank, NEXIM and other financial institutions can readily finance.

The fund will assist the early development process of projects from the concept stage to bankability by covering the preparation of feasibility studies, project development and advisory services and related costs.

President of Afreximbank Prof. Benedict Oramah said “the fund will play a catalytic role in accelerating the diversification of the Nigerian economy by ensuring a steady flow of bankable projects in priority tradable sectors in a timely manner.”

Oramah noted that to enhance bankability, “the Fund will, on a case-by-case basis, undertake feasibility studies to assess the viability of accessing markets in the sub-region, thereby promoting intra-African trade under the AfCFTA”.

On his part, NEXIM Bank’s Managing Director Abubakar Abba Bello, said: “The fund is designed to mitigate the project selection challenges, particularly amongst the SMEs, towards boosting their contribution to formal exports.

“This technical expertise will enhance NEXIM’s implementation of its export development programme, especially with regards to the state export development and industrialisation initiatives.”