Orascom Investment Holding (OIH), a conglomerate based in Egypt and the African Export-Import Bank (Afreximbank) have signed a facility agreement of $170 million.
The facility will assist Orascom’s pan-African expansion activities by paving the way for the company to explore business and investment opportunities referred to it by Afreximbank in countries such as Nigeria, Rwanda, Togo, Eretria and Sao Tome.
Prof. Benedict Oramah, the President of Afreximbank said the facility agreement was part of the bank’s effort to promote intra-African investments and export manufacturing, using the bank’s framework of Intra-African Investment Finance Facility.
According to Oramah, the transaction will provide an opportunity for Orascom’s targeted investments in companies across Africa to support their transformation, increase their production capacity and produce higher quality exports through better value addition, especially in the agro-processing sector.
He noted that the facility will complement ongoing macroeconomic and safety net reforms in Egypt, which seek to foster sector-specific economic growth, especially in strategic sectors with proven record of creating jobs and reducing poverty.
Oramah described Orascom as one of the most successful and diverse holding companies in the North Africa region, with the potential of assisting the Bank in expanding its operations in the regional and Egyptian markets. He said the agreement would set up long-term strategic partnership between Afreximbank and Orascom.
The President who spoke on the collaboration of the two institutions said “our collaboration opens the potential for our two institutions to strengthen their relationship and mutual cooperation in order to make significant contributions towards unlocking the full potentials of intra-African investment”.
Naguib Sawiris, the Chairman of Orascom said the company’s focus is to invest in Africa. He noted that progress will be achieved if intra-African trade and investment growth were realised.