JAKARTA (TheInsiderStories) – The African Export-Import Bank (Afreximbank) and the Indonesia Eximbank have signed a deal worth $100 million to support businesses and trade activities between Indonesia and African countries.
The agreement, signed on the sideline of the Indonesia-Africa Forum on Wedmesday (12/4), will support African imports from Indonesia and African exports to Indonesia in order to stimulate increased trade flows between Africa and Indonesia and spur economic growth and development.
Amr Kamel, Executive Vice President, Business Development and Corporate Banking, signed the agreement on behalf of Afreximbank while Sinthya Roesly, Chairman and Executive Director of Indonesia Eximbank, signed on behalf of her institution.
According to the statement, Afreximbank would work with Indonesia Eximbank in supporting import of capital equipment and services from Indonesia by African private sector entities through an overseas financing arrangement, with Indonesia Eximbank providing direct financing to African buyers of Indonesian goods and services on the back of a guarantee provided by Afreximbank.
Indonesia Eximbank will also provide financing support to Indonesian buyers of African goods, with Afreximbank acting as the Bank of the African exporters. In addition, Indonesia Eximbank will support short-term trade transactions emanating from African buyers of Indonesian products, including through provision of confirmation lines to the African Banks on the back of a trade confirmation guarantee facility provided by Afreximbank.
“The agreement could make an important contribution to the economic development of our respective regions by leveraging the capabilities of our respective institutions to promote and finance trade between Indonesia and Africa, thereby enhancing South-South trade,” Amr Kamel in the statement.
Afreximbank is the foremost pan-African multilateral financial institution devoted to financing and promoting intra- and extra-African trade.
The Bank was established in October 1993 by African governments, African private and institutional investors, and non-African investors.
Since 1994, it has approved more than $51 billion in credit facilities for African businesses, including about $10.3 billion in 2016. Afreximbank had total assets of $11.7 billion.
The IAF which took off on Tuesday, seeks to provide space for dialogue between African and Indonesian businesses with several agreements expected to be signed.
The forum will also facilitate business matchmaking, encourage technical cooperation and explore possibilities for triangular cooperation, among others.
The IAF is a platform for Indonesian and African governments and business actors to promote trade and economic cooperation, as well as investment opportunities and technical cooperation between Indonesia and the countries of the African Union region.
The total value of Indonesia’s trade with Africa in 2017 reached US$8.85 billion, an increase by 15.49 percent from the previous year.
Written by Elisa Valenta, email : email@example.com