Timothy
African Export-Import Bank (Afreximbank) has announced a US$400 million facility for Zimbabwean-based pan-Africa firms seeking to undertake major investments across the African continent, according the bank’s executive vice president, Denys Denya.
Denya told delegates attending the SADC Industrialisation Week investment conference in Harare on Monday that the bank had assisted several leading corporates in Africa to penetrate new markets.
Nigerian billionaire, Aliko Dangote’s cement projects in Ghana and Tanzania, Econet Group’s expansion into the rest of Africa as well as Arab Contractors’ venture into Tanzania and East Africa are some of the beneficiaries of the bank’s project.
“I am happy to announce that we have set aside US$400 million for Zimbabwean-based pan-African corporates who want to venture into the continent. We recognise the fragmented nature of production systems in the region, that is why we have rolled out our initiative for supporting the emergence, expansion and export trading expansion of companies to aggregate products for the export markets,” he said.
The bank disbursed US$3,5 billion to export trading companies operating in the region in such countries as Tanzania, Malawi, Zambia and Zimbabwe; integrating agriculture into the region as well as global value chains.
Denya added that the bank was deepening its support to accelerate and transform economies in the region and would soon conclude a US$300 million facility for companies in Malawi in support of production, processing and exporting activities.
President Mnangagwa will officially open the SIW tomorrow.
It is being held under the theme “Promoting Innovation to Unlock Opportunities for Sustainable Economic Growth and Development Towards an Industrialised SADC”.
Speaking at the same event, Finance, Economic Development and Investment Promotion Minister, Professor Mthuli Ncube, said SADC accounted for an average of 28 percent of Africa’s Gross Domestic Product, 26 percent of Africa’s total population and attracted 30 percent of total foreign direct investment inflows into the continent over the last decade.
He said according to the International Monetary Fund (IMF) Regional Economic Outlook for April 2024, the region was among the eight Regional Economic Communities (RECs) working towards the integration of the continent.
Mthuli said developing countries were grappling with increased debt vulnerabilities and this is hindering development and industrialisation in SADC.
“It is apparent that developing countries are grappling with heightened vulnerabilities as indicated by subdued solvency and liquidity indicators.
“In this regard, debt restructuring initiatives and more effective implementation of debt relief programmes such as the G20 framework would free up financial resources which can be channeled towards industrialisation, drive economic progress and development.
“In fact, we have argued in other fora globally, that the G20 framework needs to be transformed,” he said.
Mthuli said it was imperative to reform the global financial architecture to support the industrialisation agenda in the region.
“The global financial architecture is tilted against the developing countries from a low share of SDRs (Special Drawing Rights) quotas that were extended by the IMF.
“Three years ago, as Zimbabwe we used to borrow at something like 8 percent per annum, right now we are borrowing at about 12 percent in terms of the debt that we are able to access and this has nothing to do with the credit rating of the country and every any other country can tell you a similar story,” he said.
Bongani Ndlovu