African Export-Import Bank (Afreximbank) has granted a credit facility amounting to $500 million to Egyptian contractors Elsewedy Electric and Arab Contractors Company.
The funds will be utilised for the issuance of letters of guarantee and working capital to support their projects across Africa.
Elsewedy Electric has been allocated $300 million, while Arab Contractors Company has received $200 million.
For Elsewedy Electric, Vice President Mohamed Atef signed the agreement with Ayman Al-Zoghbi, Head of Intra-Trade, Trade, Corporate, and Investment Finance at Afrexim Bank.
The Bank had supported Elsewedy Electric in securing and executing energy-related engineering, procurement, and construction contracts in several African countries, including Zambia, Angola, Togo, Ethiopia, Ghana, South Sudan, Cameroon, Niger, and Tanzania.
Kanayo Awani, Vice Chairman of the Board of Directors of Afrexim Bank, and Mohamed Onsi El Bashouti, Member of the Board of Directors of Arab Contractors Company, formalised the agreement. Afrexim Bank previously supported Arab Contractors' projects in Côte d'Ivoire, Tanzania, Ethiopia, Mauritania, and Morocco.
Afreximbank played a significant role in financing the $2.9 billion Rufiji Dam and hydroelectric power station in Tanzania, which was executed by a consortium of Arab Contractors and Elsewedy Electric Group.
(Reporting by Marwa Abo Almajd; Editing by Anoop Menon)
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