The African Export-Import Bank (Afreximbank) has announced the disbursement of £100 million revolving global credit facility to Mota-Engil Engenharia e Construçáo África, S.A. (Mota-Engil Africa) to support the company to implement key developmental projects in Africa.
Obi Emekekwue, Afreximbank’s Global Director, Communications and Branding, disclosed this on Thursday, stating that such projects include the construction of trade-carrying and trade-supporting infrastructure required for the acceleration of the integration process in the continent, said Afreximbank in the announcement released in Cairo.
According to the Bank, the facility will strengthen Mota-Engil Africa’s capacity to carry out projects critical to reducing transaction costs for businesses, growing intra-regional trade, easing movement of goods, services and people, boosting employment and stimulating economic activity in Africa.
The transaction is expected to lead to increased activity in a number of economic sectors, including petroleum and petrochemicals, heavy equipment supplies, spare parts supplies, architectural services, and to increased public revenues from an expansion in economic activity in various countries.
Mota-Engil Africa is a significant player in intra-African trade as evidenced by the volumes of goods and services it procures from and distributes to, African countries where it executes contracts.
Some of the infrastructure developed by the company, including ports and railways, serve multiple countries.
The company has a robust backlog of strategic projects in Africa in excess of EUR3 billion, covering such sectors as construction, mining, power, medical, infrastructure management, waste management and other concession businesses.
Speaking on the transaction, Prof. Benedict Oramah, President of Afreximbank, said that with the easing of mobility of goods, services and people across African borders foreseen under the transaction, there would be an increase in intra-regional trade, leading to creation of jobs, increase in foreign exchange earnings and growth in government revenues.
Apart from enabling African governments to improve the quality of life of their citizens in line with the Sustainable Development Goals, the expected developmental outcomes will contribute to the implementation of the goals of the African Continental Free Trade Area, he added.
Also participating in a ceremony to mark the transaction were Kanayo Awani, Managing Director, Intra-African Trade Initiative, Afreximbank, and Manuel Mota, Chief Executive Officer, Mota-Engil Africa.