Canada provides funding to finance African companies procuring Canadian goods or services.
The President and Chief Executive Officer of EDC, Stephen Poloz ,and the President of Afreximbank, Jean-Louis Ekra, signed the agreement in Cape Town, South Africa, on November 13.
According to a statement in Lagos on Thursday, the five-year line of credit is intended to facilitate business in all sectors.
In the statement, Mr. Poloz said that the EDC sees significant opportunities in Information and Communication Technology, and extractive sectors.
He said that the EDC’s collaboration with Afreximbank is because its business interests aligned with those of EDC, particularly Afreximbank’s focus on the private sector and creating trade opportunities.
“Adding financial capacity for African-Canadian trade across 33 African countries through Afreximbank meshes very well with EDC’s partnership preferred philosophy,” Mr. Poloz said.
Mr. Ekra lauded the EDC for the credit line, adding that the facility would provide an opportunity for Afreximbank to promote trade between Africa and Canada.
Mr. Ekra said that the credit line would deepen the business relationship between Afreximbank and EDC. “The goods and services that are expected to be imported into Africa under the facility will serve to boost export diversification and enhance the economic growth and development of the continent,” he said.
According to Mr. Ekra, Afreximbank plans to use the facility for medium-term financing to support purchases of Canadian goods and services from a broad range of sectors.
He said that the broad range of sectors included mining, telecommunications, transportation, manufacturing, energy and agro-industry.
Mr. Poloz said that in 2011, 457 Canadian companies used EDC’s products or services to undertake export business in 46 African countries.
EDC is Canada’s export credit agency, offering innovative commercial solutions to help Canadian exporters and investors expand their international business.
Afreximbank was established in October 1993 to finance and promote intra and extra-African trade. The bank was set up by African governments, African private and institutional investors, and non-African investors. It is headquartered in Cairo, Egypt.