The African Export-Import Bank (Afreximbank) and Nigeria Export-Import Bank (NEXIM) has expressed readiness to mobilise $50 million as Joint Project Preparation Fund for investments in Nigeria.
This was contained in a joint statement issued by both organisations in Cairo, Egypt, and Abuja on Wednesday, March 24.
Prof. Benedict Oramah, President of Afreximbank, and Mr. Abba Bello, Managing Director of NEXIM were the signatories in the statement.
The statement quoted Bello as saying both organisations signed a Memorandum of Understanding (MoU) to establish the fund.
The fund, he explained, would provide early project preparation financing and technical support services to public and private sector entities operating in Nigeria’s trade sector.
He added that under the terms of the MoU, they would collaborate through the preparation fund to unlock investments into sectors such as export manufacturing, agro-processing, and solid minerals development.
Others are beneficiation services, healthcare, Information and Communications Technology and creative industries.
The fund is expected to support public and private sector investors by providing technical and financial support services would result in a steady pipeline of well-structured, bankable projects that Afreximbank, NEXIM and other financial institutions could readily finance.
“This intervention is timely as the fund will play a catalytic role in accelerating the diversification of the Nigerian economy by ensuring a steady flow of bankable projects in priority tradable sectors in a timely manner.
“In addition to enhancing bankability, the fund will, on a case-by-case basis, undertake feasibility studies to assess the viability of accessing markets in the sub-region, thereby promoting intra-African trade under the AfCFTA. We are pleased to be replicating a similar initiative we pioneered in Malawi in partnership with Malawi Export Development Fund (EDF) and look forward to more opportunities across the continent,” the statement read.