1. Enterprise Singapore (EnterpriseSG) and African Export-Import Bank (Afreximbank) (www.Afreximbank.com) have signed an agreement to enhance access to financing for Singapore companies seeking to venture into Africa. This marks the first partnership between EnterpriseSG and a multilateral development bank[1], as part of the Enterprise Financing Scheme – Multilateral Development Banks (EFS-MDB). This partnership with Afreximbank will enable Singapore companies to tap new sources of financing from one of the key lenders in Africa when expanding overseas to the countries in the continent.
2. Through the EFS-MDB, EnterpriseSG provides risk-sharing of up to 50% to support lending to Singapore companies from partner multilateral development banks. The partnership will cover a range of financing needs, including working capital, fixed assets, trade, project and mergers&acquisition.
3. Said Mr Geoffrey Yeo, Assistant Managing Director for Capabilities, Urban Systems&Solutions at EnterpriseSG, “Our collaboration with Afreximbank not only helps Singapore companies secure new sources of financing for their trade and internationalisation projects in Africa; it will also allow companies to speed up understanding of the various countries and seek potential partners through the bank’s deep institutional knowledge and extensive networks. Conversely, we hope that Singapore companies’ trade and investment activities can add value to the industrialisation and export development in Africa.”
4. This partnership is in line with Afreximbank’s strategy to drive the expansion and diversification of African trade and increase the region’s share of global trade. Mr Haytham ElMaayergi, Executive Vice President for Global Trade Bank at Afreximbank commented: “Afreximbank is committed to fostering greater connectivity between Africa and global markets. This partnership with Enterprise Singapore represents a significant step towards unlocking new trade and investment opportunities for Singaporean companies in Africa. Afreximbank represents a gateway to Africa to Singaporean entities providing access to tailored financing and de-risking solutions and leveraging our expertise, knowledge and goodwill of the African continent. In this regard, we support the growth of Singaporean businesses while driving Africa’s industrialisation and trade development, in line with our vision to expand the continent’s share of global trade.”
5. Beyond financing, Singaporean companies can also leverage Afreximbank’s Africa Trade Gateway, which is a digital match-making platform that can connect them to partners, investors and financiers in Africa.
6. With a large population of about 1.5 billion, Africa is rich in natural resources, with many of its countries boasting a vibrant private sector that drives economic growth. Given its rapid urbanisation and sizeable consumer market, the continent offers Singapore companies opportunities in areas such as trade, digitalisation&technology, sustainability, and urban solutions. The African Continental Free Trade Area (AfCFTA), which unites the continent’s 54 countries into a single market with reduced trade barriers, further boosts trade and demand for goods across different sectors.
[1] MDBs are supranational institutions set up by sovereign states, which are their shareholders, to foster economic and social development in developing nations. MDBs provide loans and guarantees to fund projects that support social and economic development.
For media enquiries and/or photos, please contact:
Eileen POH
Senior Business Partner
Corporate Communications
Email: eileen_poh@enterprisesg.gov.sg
Vincent Musumba
Communications and Events Manager (Media Relations)
Email: vmusumba@afreximbank.com
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About Enterprise Singapore:
Enterprise Singapore is the government agency championing enterprise development. We work with committed companies to build capabilities, innovate and internationalise.
We also support the growth of Singapore as a hub for global trading and startups, and build trust in Singapore’s products and services through quality and standards.
Visit www.EnterpriseSg.gov.Sg for more information.
About Afreximbank:
African Export-Import Bank (Afreximbank) is a Pan-African multilateral financial institution mandated to finance and promote intra-and extra-African trade. For 30 years, the Bank has been deploying innovative structures to deliver financing solutions that support the transformation of the structure of Africa's trade, accelerating industrialization and intra-regional trade, thereby boosting economic expansion in Africa. A stalwart supporter of the African Continental Free Trade Agreement (AfCFTA), Afreximbank has launched a Pan-African Payment and Settlement System (PAPSS) that was adopted by the African Union (AU) as the payment and settlement platform to underpin the implementation of the AfCFTA. Working with the AfCFTA Secretariat and the AU, the Bank is setting up a US$10 billion Adjustment Fund to support countries effectively participating in the AfCFTA. At the end of December 2023, Afreximbank's total assets and guarantees stood at over US$37.3 billion, and its shareholder funds amounted to US$6.1 billion. The Bank disbursed more than US$104 billion between 2016 and 2023. Afreximbank has investment grade ratings assigned by GCR (international scale) (A), Moody's (Baa1), Japan Credit Rating Agency (JCR) (A-) and Fitch (BBB). Afreximbank has evolved into a group entity comprising the Bank, its impact fund subsidiary called the Fund for Export Development Africa (FEDA), and its insurance management subsidiary, AfrexInsure (together, "the Group"). The Bank is headquartered in Cairo, Egypt.
For more information, visit: www.Afreximbank.com
