OTTAWA, CANADA AND CAPE TOWN, SOUTH AFRICA, Nov. 13, 2012 /CNW Telbec/ - Export Development Canada (EDC) today announced that it has provided a USD 30 million five-year line of credit to the African Export-Import Bank (Afreximbank), the proceeds of which will be used to provide financing to African companies procuring Canadian goods or services.
Stephen Poloz, President and CEO, EDC, and Jean-Louis Ekra, President of Afreximbank, signed the agreement for the line of credit at a ceremony in Cape Town, South Africa, on November 13, 2012.
"Afreximbank's business interests align very well with those of EDC, particularly Afreximbank's focus on the private sector and creating trade opportunities. While the line of credit is intended to facilitate business in all sectors, we see significant opportunities in ICT and extractive already developing," said Mr. Poloz.
"Adding financial capacity for African-Canadian trade across 33 African countries through Afreximbank meshes very well with EDC's partnership preferred philosophy," he added.
"This facility provides an opportunity for us to promote trade flow between Africa and Canada as well as deepen the business relationship between Afreximbank and EDC," said Mr. Ekra. "The goods and services that are expected to be imported into Africa under the facility will serve to boost export diversification and enhance the economic growth and development of the continent."
According to the President, Afreximbank plans to use the facility for medium-term financing to support purchases of Canadian goods and services from a broad range of sectors, including mining, telecommunications, transportation, manufacturing, energy and agro-industry.
In 2011, 457 Canadian companies used EDC's products or services to undertake CAD 2.4 billion in export business in 46 African countries.
The African Export Import Bank was established in October 1993 by African governments, African private and institutional investors, and non-African investors to finance and promote intra- and extra-African trade. Its two basic constitutive documents are the Establishment Agreement, which gives it the status of an international organization, and the Charter, which governs its corporate structure and operations. AFREXIMBANK is headquartered in Cairo. For more information, visit: www.afreximbank.com
About Export Development Canada
EDC is Canada's export credit agency, offering innovative commercial solutions to help Canadian exporters and investors expand their international business. EDC's knowledge and partnerships are used by more than 8,200 Canadian companies and their global customers in up to 200 markets worldwide each year. EDC is financially self-sustaining and a recognized leader in financial reporting and economic analysis.
SOURCE Export Development Canada