Rwanda and other African countries now have alternatives sources of capital for various infrastructure projects, following an agreement by Nordic Investment Bank (NIB) and the African Export-Import Bank (Afreximbank) setting up a 10-year loan programme of EUR 100 million.
The EUR 100 million made available to Afreximbank under joint facility, will be used for financing eligible investments, which mainly include projects within infrastructure, such as energy, telecom, industrial parks and special economic zones, roads, railways and harbours.
The agreement comes at a time when Rwanda and other East African member states are seeking financing for infrastructure projects such as Standard Gauge Railway, increase road network and energy, among other projects.
The loan programme will allow the Nordic Investment Bank to support export projects that include service and equipment deliveries from the Nordic and Baltic countries.
All projects considered for financing will be analysed by NIB from a sustainability perspective for their impact on productivity as well as any potential impact on climate change mitigation and the environment.
"We are pleased to announce our cooperation with Afreximbank in facilitating investments in African countries. Providing long-term capital to projects of mutual interest supports innovation and environmental protection", says Henrik Normann, NIB President and Chief Executive.
"The facility will enhance Afreximbank's capacity to implement our current strategy, which prioritises industrialisation and export development, by providing medium to long-term financing for trade enabling infrastructure projects in our member states," said Amr Kamel, Executive Vice President, Business Development and Corporate Banking, at Afreximbank.
"We are confident that the facility will have a significant impact on the Africa continent in terms of industrial development. We are delighted that the Nordic Investment Bank has chosen to partner with us in the pursuit of Africa's industrialisation and export development. This collaboration will contribute to fostering sustainable economic growth and development in Africa, among other development outcomes," added Kamel.
NIB is an international financial institution owned by eight member countries; Denmark, Estonia, Finland, Iceland, Latvia, Lithuania, Norway and Sweden, and finances private and public projects in and outside the member countries.
The African Export-Import Bank (Afreximbank) is the foremost pan-African multilateral financial institution devoted to financing and promoting intra- and extra-African trade. The bank was established in October 1993 by African governments, African private and institutional investors, and non-African investors.