Export Development Canada (EDC) has provided a $30 million (N4.8 billion) five-year line of credit to the African Export-Import Bank (Afreximbank) to boost Africa-Canada Trade.
In a statement Wednesday, EDC said the funds would be used to provide financing to African companies procuring Canadian goods or services.
President and CEO, EDC, Stephen Poloz, and President of Afreximbank, Jean-Louis Ekra, signed the agreement for the line of credit at a ceremony in Cape Town, South Africa.
According to Poloz, "Afreximbank's business interests align very well with those of EDC, particularly Afreximbank's focus on the private sector and creating trade opportunities. While the line of credit is intended to facilitate business in all sectors, we see significant opportunities in ICT and extractive already developing."
"Adding financial capacity for African-Canadian trade across 33 African countries through Afreximbank meshes very well with EDC's partnership preferred philosophy," he added.
President of Afreximbank, Jean-Louis Ekra, in the statement said the facility provided an opportunity to promote trade flow between Africa and Canada as well as deepen the business relationship between Afreximbank and EDC.
He said: "The goods and services that are expected to be imported into Africa under the facility will serve to boost export diversification and enhance the economic growth and development of the continent."
The Afreximbank boss said he planned to use the facility for medium term financing to support purchases of Canadian goods and services from a broad range of sectors, including mining, telecommunications, transportation, manufacturing, energy and agro-industry.
In 2011, 457 Canadian companies used EDC's products or services to undertake CAD2.4 billion in export business in 46 African countries.
The African Export Import Bank was established in October 1993 by African governments, African private and institutional investors, and non-African investors to finance and promote intra- and extra-African trade. EDC is Canada's export credit agency, offering innovative commercial solutions to help Canadian exporters and investors expand their international business.