Afreximbank has 4 billion dollars available to fund mega-projects

Maputo, 2 Dec (AIM) – The African Export-Import Bank (Afreximbank) has 4 billion dollars available to fund Mozambican projects in the sectors of energy, tourism and processing industries.

According to George Elombi, Afreximbank chairperson, who was speaking to reporters on Monday after being received in an audience by Mozambican President Daniel Chapo, his institution is ready to fund “the government five strategic pillars which are energy, tourism, minerals, refineries and processing.”

“We had a long and very useful meeting with President Chapo, and the conversation revolved essentially around economic projects. Exclusively on economic issues”, he said.

Elombi explained that the parties also addressed various ways to support the Mozambican economy as a whole, and “we decided that we will develop a financing program to address power generation projects and transmission lines, tourism infrastructure.”

“We believe it will amount to several billion dollars. The investment also includes power plant projects, transmission lines, tourism infrastructure, and initiatives framed within the strengthening of the partnership between Mozambique and Afreximbank.

Elombi was also received in an audience by the Minister of Finance, Carla Louveira. “The meeting was aimed at mobilizing new financing for priority projects, expand Afreximbank’s support to the public and private sectors, accelerate initiatives related to intra- and extra-African trade, and consolidate partnerships for structural actions, particularly in agricultural mechanization”, he said.

Mozambique, through the Bank of Mozambique, became a member of Afreximbank in 1993 as a Class A Founding Shareholder, with a subscription of one million dollars.

On September 30, 2019, the country reinforced its position in the institution by officially becoming a Participating State, following the delivery of the original instrument of accession to the agreement that created Afreximbank.

With this step, Mozambique gained expanded access to financing lines aimed at both the public and private sectors, opening new opportunities for investment projects and economic development.

According to Louveira, the central role of Afreximbank is one of the biggest drivers of the African Continental Free Trade Area.

“The Government has submitted a funding request for the agricultural mechanization project. The plan foresees the acquisition of 3,952 agricultural machines and equipment, such as tractors, plows, harrows, sprayers, fertilizer spreaders and heavy machinery”, she said.

(AIM)

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