Afreximbank aims to provide Egypt with financing worth $3 bn in H2-2023

According to Ayman El-Zoghby, Director of Trade, Investment, and Corporate Finance at the African Import-Export Bank, the bank aims to provide $3 bn in financing to support various sectors in the Egyptian economy during the second half of the current year.

He also mentioned that the bank has facilitated procedures for many African companies to obtain contracts with African countries in the infrastructure sector, exceeding $12 bn, with Egyptian companies accounting for about $6 bn of that.

El-Zoghby emphasized that Egypt is the largest shareholder in the African Import-Export Bank, in addition to hosting the bank's headquarters. Since its establishment, the bank has provided financial support to Egypt exceeding $20 bn, mostly within the last 6 or 7 years.

This support has been directed towards strategic and vital sectors such as electricity, gas, petroleum, healthcare, and construction, as well as many leading companies in the Egyptian market, especially in the construction field.

Regarding the settlement and clearance system, El-Zoghby affirmed that it is one of the most important steps taken by the bank to enhance trade exchange between African countries and promote export and investment among them. He indicated that the bank is working to cooperate with Egypt in this regard, as it significantly reduces dependence on foreign currency and facilitates trade between African countries using local currencies.

El-Zoghby added that Egypt's portfolio in the bank currently amounts to around $7 bn, representing about 20% of the total loans and the bank's overall portfolio, which is valued at approximately $34 bn.

El-Zoghby stressed that these financing facilities are granted to various strategic sectors that serve Egypt's strategic and vital direction, while supporting the expansion of Egyptian companies' presence in other African countries.

Meanwhile, the bank is in talks with the Central Bank of Egypt and several Egyptian commercial banks to activate Egypt's membership in the payment and settlement system launched in January 2022 during the second half of this year.

This step aims to enhance opportunities for Egyptian banking institutions to increase trade and investment with African countries using local currencies and overcome the pressures and scarcity of foreign currency.

African Import-Export Bank aims to have 15 to 20 countries join the African payment and settlement system by the end of the year.