AFC Secures $300 Million Loan from China's Eximbank to Promote African Trade Finance

The leading infrastructure solutions provider on the continent, Africa Finance Corporation (AFC), earlier signed a $300 million loan facility agreement with the Export-Import Bank of China (CEXIM).

The agreement, which is signed in collaboration with the Asian Infrastructure Bank (AIIB), stands to provide a boost in trade finance and investment across the African continent, which in turn will foster economic growth and development. 

The 3-year loan facility of $300 million is part of AFC’s long partnership with CEXIM. The collaboration between the two institutions can be traced back to 2018 when AFC received $400 million in bilateral loans from CEXIM.

The loan was for the special purpose of financing trade finance and investment in Africa, which will help expand the flow of goods and services between Africa and China.

Commenting on the partnership, Sanjeev Gupta, Board Member and Head of Financial Services for Africa Finance Corporation said, "This partnership with CEXIM is a significant milestone for AFC as we continue to expand our footprint in the Asian capital markets. It significantly increases our capacity to provide trade finance solutions on the continent, promoting international trade and economic diversification while reinforcing the strong economic ties between Africa and China.

“CEXIM attaches great importance to the China-Africa financial cooperation and AFC is an important partner for us. Over the past few years, CEXIM has provided loans to AFC to enhance the bilateral trade and investment between China and Africa.” said Wencai Zhang, Vice President of CEXIM, “This new project has elevated our bilateral cooperation to a new level and will further enhance China-Africa trade and economic cooperation through the financial support of our two institutions.” AFC reported on their website.

With the success of the AFC and CEXIM partnership, Africa's infrastructure challenges are expected to be addressed effectively. The need for regional institutions to collaborate and bring transparency, answerability, and focus is critical to ensuring that global standards of governance and sustainability are met.

AFC is committed to delivering unique and practical solutions that benefit stakeholders, uphold standards, and promote sustainable development and economic growth in Africa.