Ashly DhaniBusiness Writer
Afreximbank has pledged to inject millions of dollars into key projects in Zimbabwe as part of its broader push to industrialise the African continent.
The bank’s Senior Executive Vice President, Denys Denya, made the announcement during the recent SADC Industrialization Week Investment Forum in Harare recently.
A key focus for Afreximbank is the agricultural sector, which it believes is ripe for industrialisation and value addition. The bank has committed a substantial US$2 billion to its Export Agriculture for Food Security (ExAFS) Initiative, aimed at boosting production, processing, and intra-African trade in agricultural products.
“The Agriculture Sector is ripe for industrialisation and value addition that is why Afreximbank working with strategic partners and member countries is facilitating the implementation of the Export Agriculture for Food Security (ExAFS) Initiative and has committed US$2 billion financing to boost production, processing and Intra-African trade in agricultural products,” Denya said.
In Zimbabwe, Afreximbank has identified seven priority projects under the ExAFS Initiative. These include a US$45 million cotton seed oil plant in Gokwe, a US$170 million expansion of the Grain Marketing Board’s silo storage capacity, and a US$231 million plan to re-establish Zimbabwe’s beef export market.
“Currently, the Bank is processing pipeline deals and transactions of US$500 million, within the pilot origin countries,” Denya revealed.
Beyond agriculture, Denya emphasized the broader need for industrialisation across Africa. “Africa needs all hands on the deck in order for African countries to industrialise, especially during the current Fourth Industrial Revolution,” he said.
The bank executive highlighted the importance of Africa Direct Investment (ADI) and Foreign Direct Investment (FDI) in driving industrial growth. He acknowledged challenges in attracting finance for industrial projects and outlined Afreximbank’s efforts to address this through its project preparation facility and investment promotion initiatives.
Afreximbank’s commitment to Zimbabwe and the broader region underscores its role in supporting Africa’s economic transformation. With significant financial backing and a focus on key sectors, the bank is positioning itself as a catalyst for growth and development.
Denya described the current state of affairs as ‘unacceptable’ and made the case for advancing the cause of industrialisation through Africa Direct Investment (ADI) and Foreign Direct Investment within the SADC region and across the broader African continent, to “transform our continent”.
He noted that one significant constraint to attracting finance into Africa had been the absence of bankable industrial and manufacturing projects, due to lack of resources to undertake feasibility and required technical studies and announced that Afreximbank was trying to close that gap through its project preparation facility and its investment promotion initiatives.
Those initiatives included the launch of the Afreximbank Africa Direct Investment Report, which seeks to promote intra-African investments, he said. “We have just completed a report on ADI, which will be published before the end of the year, and we have also developed a framework that would be used by investment promotion agencies and other stakeholders to measure ADI and put forward interventions to facilitate and promote ADI. The initiative will also facilitate the implementation of both the AfCFTA and SADC protocols on investment.”
Denya added that Afreximbank is ready to support the trade and investment transactions and deals agreed on the margins of the SADC Investment Forum using its suite of financing products and initiatives which include grant financing, project preparation facilities, advisory and capital markets solutions, capacity building and advocacy, equity mezzanine and debt financing, facilitation and guarantees solutions.
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