African Export-Import Bank (Afreximbank) and Nigeria Export-Import Bank (NEXIM) said they are mobilizing up to $50 million project preparation funds for investments in Nigeria.
This followed the signing of 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, according to a statement by AfreximBank, both banks would collaborate through the 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.
Prof. Benedict Oramah, President of Afreximbank, said: “The execution of this MoU marks yet another significant milestone in our collaboration with NEXIM.
“This intervention is timely as 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.
“In addition to enhancing 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.”
Similarly, Mr. Abubakar Abba Bello, Managing Director of NEXIM, said: “We are quite pleased by this opportunity to, once again, partner with Afreximbank in proffering a solution to one of the major challenges that have limited the flow of credit to the Nigerian export sector.”