The 32nd Annual Meetings of African Export-Import Bank (Afreximbank)
witnessed a flurry of deal signings with four project
preparation transactions signed between the Bank and various entities
that are expected to unlock investments valued at about US$ 1.0 billion.
In an agreement signed by Mrs. Kanayo Awani, Executive Vice President,
Intra-African Trade and Export Development, for Afreximbank, and Mrs.
Temwani Simwaka, CEO, for NBS Bank Plc (NBS), Malawi, the two
institutions executed a Joint Project Preparation Facility Framework
Agreement under which they will pool resources to provide early project
preparatory financing to progress projects in Malawi from
pre-feasibility stage to bankability in a timely manner.
As set out in the agreement, Afreximbank and NBS will support public and
private sector investors by availing financing and technical support
services to de-risk projects in priority sectors, including energy,
transport and logistics, logistical platforms (such as special economic
zones and industrial parks), manufacturing, agro-processing, hospitality
and tourism, extractives, solid minerals, and services (such as ICT,
healthcare, and creative economy). Embedded in the framework agreement
is a capacity building programme that will empower NBS staff to
undertake project preparation activities in the medium term.
Afreximbank and NBS expect to bring onstream investments of about US$
300 million in Malawi in the near term.
In another transaction, Afreximbank signed a US$ 4.4-million Project
Preparation Facility Agreement in favour of Med Aditus Pharmaceutical
Kenya Limited. The facility will be deployed to finance the preparation
of feasibility and bankability studies towards the development of a
state-of-the-art fill and finish pharmaceutical manufacturing plant,
with a production capacity of at least two billion tablets and capsules
per annum, located in Kibos, Kisumu County, Kenya.
The project will improve access to quality, affordable life-saving
medicines across the Great Lakes region, contributing to better health
outcomes in a region that contends with heavy loads of infectious and
other diseases. The project will also facilitate medical and
manufacturing blockchain technology transfer to Africa, supporting the
long-term growth and strengthening the wider region’s health sector. The
project preparation facility will bring onstream assets of about US$ 40
million.
Mrs. Kanayo Awani, Executive Vice President, Intra-African Trade and
Export Development, signed the agreement on behalf of Afreximbank while
Dr. Dhiren Thakker, Founder and CEO of Med Aditus Pharma, signed for his
company.
Afreximbank also signed a Heads of Terms agreement for a US$4.4-million
project preparation facility in favour of Green Hybrid Power Private
Limited. The facility will be deployed towards the preparation of
bankability and feasibility studies and procurement of transaction
advisors for a 1-Gigawatt (GW) hybrid floating solar photovoltaic power
system on Lake Kariba, Zimbabwe.
The project, to be implemented in two phases, includes a pilot phase
targeting a generation capacity of 500 MW to be sold wholly to the
Intensive Energy Users Group, a consortium of blue-chip industrial and
mining energy users in Zimbabwe, under a “take-or-pay” 20-year power
purchase agreement with a cost-reflective tariff. The project is
expected to supply affordable and reliable power that will support
value-addition and beneficiation of Zimbabwe’s minerals, thereby
boosting the country’s foreign exchange earnings.
The project preparation facility will unlock an investment estimated at
US$ 350 million.
Signing the agreement were Mrs. Kanayo Awani, Executive Vice President,
Intra-African Trade and Export Development, on behalf of Afreximbank,
and Mr. Eddie Cross, Chairman, for Green Hybrid Power Private Limited.
Afreximbank, in addition, signed a Project Preparation Facility Heads of
Terms Agreement of US$ 4.0 million in favour of Proton Energy Limited, a
Nigerian independent power producer. The facility will be deployed
towards financing the preparation of feasibility studies and procurement
of transaction advisory services for the development of a grid-connected
gas-fired power plant with a nameplate capacity of 500 MW in Sapele,
Nigeria. The project will commence with an initial generation capacity
of 150 MW.
The project will evacuate the electricity generated primarily to Eko
Electricity Distribution Company under a 20-year power purchase
agreement with a cost-reflective tariff.
The facility is expected to bring on stream assets estimated at US$ 300
million.
Signing the agreement were Mrs. Kanayo Awani, Executive Vice President,
Intra-African Trade and Export Development, on behalf of Afreximbank,
and Mr. Oti Ikomi, Executive Vice Chairman and CEO, for Proton Energy
Limited.
AAM2025 took place from 25 to 28 June and attracted about 8,000
participants, including presidents, prime ministers, ministers and
business leaders, from across Africa, the Caribbean and beyond.
