IslamicFinance.de

The Islamic Corporation for the Development of the Private Sector the private sector arm of Islamic Development Bank Group and the African Export-Import Bank signed a line of financing agreement for a $100-million facility on December 24th in Jeddah.

The $100-million line of financing facility will be utilized by Afreximbank to provide Shariah-compliant financing to small and medium-sized enterprises in its member countries in Africa. Afreximbank has a solid pipeline of projects in the industrial, communication, technology, health care, construction and agricultural sectors that would be financed by the ICD line of financing.

ICD CEO Khaled Al-Aboodi said: “The proposed financing facility is a token of a good partnership between ICD and Afreximbank, with the purpose of supporting private sector businesses with a Shariah-compliant facility structure in our common African member countries. Amr Kamel, executive vice president at Afreximbank said: „This facility will give a boost to our effort to implement our current strategy which prioritizes intra-African trade; intra–African investments and export manufacturing of the labor intensive type. It will also promote our knowledge in Islamic finance and provide us with additional maneuvering capacity in terms of product offerings to our clients.”

The African Export-Import Bank is the leading 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. Since 1994, it has approved more than $ 51 billion in credit facilities for African businesses, including about $ 10.3 billion in 2016.