EGYPT : Afreximbank and Uganda Development Bank sign project preparation financing agreement

12 Août 2024

LIBREVILLE, August 12 (Infosplusgabon)-African Export-Import Bank (Afreximbank) and the Uganda Development Bank (UDB) have signed a Joint Project Preparation Facility Framework Agreement to provide early project preparatory financing and technical support services to public and private sector entities. This is aimed at boosting Uganda’s industrialization and export development activities.

Under the terms of the framework agreement, Afreximbank and UDB established a joint project preparation facility to unlock investments in priority sectors, such as, energy, transport and logistics, special economic zones/industrial parks, manufacturing, agro-processing, hospitality and tourism, mining, solid minerals and service sectors.

The facility will assist in de-risking projects and rapidly advance their development from concept stage to bankability by covering the preparation of feasibility studies, project development and advisory services, and related costs. The two Banks aim to mobilize up to US$ 25 million in the form of project preparation funds for investments in Uganda.

Mrs. Kanayo Awani, Executive Vice President, Intra-African Trade and Export Development Bank (Afreximbank), signed the agreement on behalf of Afreximbank while Mr. Samuel Edem Maitum, Director of Credit, UDB signed on behalf of his organisation on 14 June 2024 in Nassau, The Bahamas.Afreximbank intends to work alongside UDB to prepare quality, bankable projects to attract investments from both the public and private sector

Commenting on the execution of the agreement, Mrs. Awani stated: “The JPPF is a critical collaborative tool through which the Bank and its partners pool resources to prepare bankable projects, given that one of the major challenges in developing projects was moving commercially viable projects to financial close. “Through this partnership, Afreximbank intends to work alongside UDB to prepare quality, bankable projects to attract investments from both the public and private sector.” She added that the JPPF will be instrumental in catalysing and mobilizing downstream investments.

Mr. Maitum noted that several transformative project ideas remain unimplemented in Uganda due to the limited availability of technical and financial support to ensure Bankability.

He stated that UDB’s collaboration with Afreximbank through the Joint Project Preparation Facility “shall unlock several transformative private and public sector-led projects. The collaboration shall also enable the flow of capital to the jointly prepared projects.”

He extended appreciation to Afreximbank for the collaboration opportunity and confirmed UDB’s commitment towards ensuring the success of the initiative.

The implementation of the agreement is expected to help accelerate economic growth in Uganda through increased private sector investments in the targeted sectors and to help position Uganda as an attractive investment destination through the supply of a steady stream of investment ready projects.

African Export-Import Bank (Afreximbank) is a Pan-African multilateral financial institution mandated to finance and promote intra-and extra-African trade. For 30 years, the Bank has been deploying innovative structures to deliver financing solutions that support the transformation of the structure of Africa's trade, accelerating industrialization and intra-regional trade, thereby boosting economic expansion in Africa.

A stalwart supporter of the African Continental Free Trade Agreement (AfCFTA), Afreximbank has launched a Pan-African Payment and Settlement System (PAPSS) that was adopted by the African Union (AU) as the payment and settlement platform to underpin the implementation of the AfCFTA. Working with the AfCFTA Secretariat and the AU, the Bank is setting up a US$10 billion Adjustment Fund to support countries effectively participating in the AfCFTA.

(Source: African Development Bank Group (AfDB)).At the end of December 2023, Afreximbank's total assets and guarantees stood at over US$37.3 billion, and its shareholder funds amounted to US$6.1 billion. Afreximbank has investment grade ratings assigned by GCR (international scale) (A), Moody's (Baa1), Japan Credit Rating Agency (JCR) (A-) and Fitch (BBB). Afreximbank has evolved into a group entity comprising the Bank, its impact fund subsidiary called the Fund for Export Development Africa (FEDA), and its insurance management subsidiary, AfrexInsure (together, "the Group"). The Bank is headquartered in Cairo, Egypt.

FIN/INFOSPLUSGABON/UYH/GABON2024

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