The loan will also aid in promoting financial cooperation between Africa and China.

The African Export-Import Bank (Afreximbank) and the Export-Import Bank of China (CEXIM) have signed a $600 million loan to fund loans and trade finance transactions.

According to a statement over the weekend, on October 17, in the presence of Shengjun Ren, President of CEXIM and Prof. Benedict Oramah, Afreximbank President and Chairman of the Board of Directors at the CEXIM Headquarters in Beijing, Mr. Wencai Zhang, Vice President of CEXIM, and Dr. George Elombi, Executive Vice President of Afreximbank signed the agreement.

It explained that the purpose of the loan was to facilitate and finance the trade and economic cooperation between the member states of Afreximbank and the People’s Republic of China (PRC).

The loan will also aide in promoting the financial cooperation between Africa and the PRC.

Speaking during the meeting and signing ceremony, Oramah noted that it was fortuitous that the signing of the important facility coincided with the 10th anniversary of the Belt and Road Initiative (BRI). “This is strong evidence of the rapid growth in cooperation between China and Africa. Noting that the BRI is a blueprint of cooperation aimed at enhancing policy, trade infrastructure, financial and people-to-people connectivity, as a bank we are committed to play a big role especially of leveraging financial resources into Africa.

“This facility will help to catalyse trade financing between Africa and the PRC, thereby enhancing flow of goods, capital and technology,” he said.

He added that through its sixth Strategic Plan, which runs from 2022 to 2026, Afreximbank was working diligently to broaden its role in African trade finance and continues to see lots of collaboration opportunities on the continent.

“Working with partners like CEXIM, we aim to attain the goals of this strategy, especially supporting China-Africa Cooperation and expanding Africa’s export manufacturing capacity,” he said.

Shengjun Ren noted that the signing of the agreement as a concrete measure taken by CEXIM in fulfilling its due responsibilities to promote high-quality BRI cooperation and to implement the nine programs under the Forum on China and Africa Cooperation framework.

It is also an important example of third-party market cooperation carried out by CEXIM.

“The two sides agreed to take the signing of this agreement as an opportunity to strengthen cooperation in various areas including credit business, equity investment, capital market operations, trade finance, personnel exchange and knowledge sharing, so as to make positive contributions to China-Africa economic cooperation and trade as well as sustainable economic and social development of African countries,” the statement added.