The African Export-Import Bank (Afreximbank) and the Japan Bank for International Cooperation (JBIC) have entered a general agreement for a $300 million export credit line to support projects in Afreximbank member States.

The credit line, endorsed in Cairo recently, would enable Afreximbank to provide funds for the import of machinery and equipment from Japanese companies and their overseas affiliates to support projects in the bank’s 51 member countries in Africa.

But, demand for machinery and equipment are needed for economic development, is expected to continue to expand in Africa and the credit line

It would support the efforts of Japanese companies and their overseas affiliates to expand exports to the African region. 

The agreement would also help to further strengthen the economic relationship between Japan and Africa.

At the signing Ceremony, Afreximbank’s Executive Vice President for Governance, Legal and Corporate Services, Dr. George Elombi, said that the facility fully aligned with the bank’s strategy and mandate to support quality growth throughout the continent.

He said, “Through this forged strategic partnership and its shared objectives, we are confident that this relationship will promote Japan-Africa economic cooperation.”

Also speaking at the event, Deputy Governor of JBIC, Nobumitsu Hayashi,  said that Africa was a land of opportunities with its diverse cultures and wealth.

According to him, JBIC had found in Afreximbank a valuable, strong and credible partner to help it with its mission to grow its level of activities in Africa in line with the broader Japan-Africa initiatives being driven by the Japanese government.

Parties to the agreement are expected to keep the bargaining for the deal to sail through.