Afreximbank signs $100 million pact to boost Africa, Indonesia trade
The African Export-Import Bank (Afreximbank) last month signed an agreement with the Indonesia Eximbank to commit up to $100 million to support businesses and trade activities between Indonesia and African countries.
The agreement, signed on the sidelines of the Indonesia-Africa Forum, 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.
Under the terms of the agreement, Afreximbank will 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, with guarantee facility provided by Afreximbank.