Afreximbank and China EximBank sign $1bn deal to facilitate trade
The agreement will support trade finance flows to Africa.The African Export-Import Bank (Afreximbank) and the Export-Import Bank of China (China EximBank) have signed a co-operation agreement to create a $1 billion programme facilitating the creation of special economic zones on the continent.
In a statement, Afreximbank said the two parties will be working together to provide Africa with capacity for light manufacturing and primary processing of raw materials and commodities.
"The agreement will also cover logistics that facilitate intra-regional trade, such as shipping equipment, railways and rolling stock, and trade facilitating infrastructure, such as power."
The cooperation will put an emphasis on improving trade finance flows into Africa through risk participation arrangements and indirect funding of Export-Import Bank of China through Afreximbank.
The two parties will also engage in joint capacity building initiatives, including staff and information exchange, to further develop access to trade finance.