Afreximbank, China Development Bank sign $400 million loan to fund SMEs

The China Development Bank (CDB) has agreed to provide the African Export-Import Bank (Afreximbank) with a $400-million term loan facility to fund small and medium-sized enterprises (SMEs) across Africa.

The agreement allows Afreximbank to deploy the facility to support African SMEs involved in extra- and intra-African trade and those engaged in the productive sectors in the development bank’s member states.

The facility, which has a seven-year tenor, will be deployed either directly to eligible African SMEs that meet Afreximbank’s requirements or indirectly through local financial intermediaries.

Benedict Oramah, President and Chairman of the Board of Directors of Afreximbank that African SMEs continue to struggle to access adequate and affordable financing to grow their businesses.

Source: Arabiya Capital