AFRICOIN Programme Loan II

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Afreximbank was founded in 1993 with the aim of promoting trade within and outside Africa. As a regional development bank, it is also an important strategic partner of the Federal Development Agency for the financing of MSMEs and the passing on of innovative and developmentally important investment loans for the African processing agricultural industry. A large proportion of the exportable products of the African agricultural sector leave the continent as unprocessed raw material and are only processed into intermediate and finished products in the industrialized countries. An important reason for this is that SMEs do not have the necessary access to long-term financing in order to be able to invest in the appropriate equipment required for further processing the raw materials. The promotional loan enables Afreximbank to further expand its loan portfolio in the area of processing agricultural SMEs (particularly in the cocoa sector), and in this way helps to further improve SMEs' access to long-term investment financing. Improved access to loans enables SMEs to invest more in the machinery and materials required for further processing primary agricultural products. This can increase local value creation, have positive effects on the labor market and potentially lead to rising wages. By expanding the value chain, higher prices for producers, improved production capacities and closer links between agricultural businesses and the processing industry can be achieved. The loan of USD 100 million has a term of eight years.