In a significant development aimed at fostering economic growth and expanding non-oil export initiatives, Sterling Bank Plc has successfully secured a $75 million deal with the African Export-Import Bank (Afrexim Bank).
According to nairametrics.com, the agreement, inked on the sidelines of the Intra-Africa Trade Fair (IATF) in Cairo, Egypt, underscores Sterling Bank’s commitment to promoting non-oil exports both within the continent and beyond.
“The deal is crucial in financing and deepening trade activities in Nigeria”
It also noted that the deal will contribute in no small measure to facilitating intra-Africa trade by improving the capacity of Africans in trade finance and hopes to ameliorate forex liquidity problems plaguing member countries and their citizens in the continent.
“The facility is expected to make a substantial contribution to the growth of Nigeria’s financial sector by improving the capacity of Africans in trade finance. Moreover, it aims to foreign currency liquidity constraints.”
“The developmental impact of this financing arrangement is worth noting to foster growth in both intra and extra-African trade. It achieves this by enabling Sterling Bank to secure funds from lenders who in turn support their customer’s import and export trade finance operations. It is a guarantee facility for $75 million”
The African Export-Import Bank has as part of its core mandate the promotion of trade within and outside the continent and ensuring full implementation of the African Continental Free Trade Area (AfCTA).
During the ongoing Intra-Africa Trade Fair (IATF) in Cairo, the bank has used the opportunity to foster trade and production in the continent by funding organisations that facilitate business in the continent.
The bank reported recently it has entered deals worth $1 billion during the IATF event.
An example of this is its signing a similar deal with the United Bank of Africa (UBA) of around $150 million to facilitate trade in the continent too.