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The African Export-Import Bank (Afreximbank) and the Export-Import Bank of China (Chexim) have signed a $1 billion cooperation agreement to promote China-Africa trade.
The Investment and Industrialisation Programme will see Afreximbank and Chexim work together to provide Africa with light manufacturing, primary processing of raw materials and commodities to facilitate the construction of industrial parks and economic zones in Africa.
It will also cover the logistical elements that facilitate this intra-regional trade including shipping, railways, and infrastructure.
Other aspects of the agreement include improvement in trade finance flows into Africa through risk participation arrangements, cross-referral of business contacts, and indirect funding of Chexim to obligors through Afreximbank.
The agreement, which was signed at Afreximbank’s AGM in the Seychelles last week, will work alongside the Made in Africa initiative, under which Afreximbank will facilitate investment flows into Africa to develop and operate industrial and agro-processing parks.
In addition, the agreement requires Afreximbank and the initiative to engage in the promotion of export trading companies in a bid to boost market access for made-in-Africa goods.
Afreximbank will also work with the initiative to establish a pan-African equipment leasing platform to supply heavy duty and manufacturing equipment to support local content in the various sectors of the African economy.
Chexim’s cumulative investment in Africa since 2000 had now surpassed $80 billion.