TheCable

The African Export-Import Bank (Afreximbank) has partnered with the Nigeria Export-Import Bank (NEXIM) to establish a fund for Nigerian exporters.

The partnership was announced on Wednesday in a statement jointly signed by Amadou Labba Sall and Lohya Mamven, media personnel of Afreximbank and NEXIM respectively.

Afreximbank said the joint project preparation fund aims to mobilise $50 million investment for private and public sector firms operating in Nigeria’s trade sector.

It said the collaboration looks to unlock investments in sectors like export manufacturing, agro-processing, solid minerals development and beneficiation services, healthcare, information and communications technology, and creative industry.

According to the statement, the fund will support public and private sector investors by providing technical and financial support services that will result in a steady pipeline of well-structured, bankable projects that Afreximbank, NEXIM and other financial institutions can readily finance.

It will also assist the early development process of projects from concept stage to bankability by covering the preparation of feasibility studies, project development, advisory services and related costs.

Benedict Oramah, president of Afreximbank, said: “I am particularly pleased that Afreximbank and NEXIM are boldly venturing upstream to help investors develop well-structured projects that meet market standards”.

“This intervention is timely as the Fund will play a catalytic role in accelerating the diversification of the Nigerian economy by ensuring a steady flow of bankable projects in priority tradable sectors in a timely manner.

“In addition to enhancing bankability, the Fund will, on a case-by-case basis, undertake feasibility studies to assess the viability of accessing markets in the sub-region, thereby promoting intra-African trade under the AfCFTA.”

Also speaking on the collaboration, Abubakar Abba Bello, managing director of NEXIM, said: “We are quite pleased by this opportunity to, once again, partner with Afreximbank in proffering a solution to one of the major challenges that have limited the flow of credit to the Nigerian export sector”.

“The Fund is designed to mitigate the project selection challenges, particularly amongst the SMEs, towards boosting their contribution to formal exports.”

Abba Bello said the collaboration will enhance NEXIM’s export development programme especially with regards to the state export development and industrialisation initiatives.