London, 11 February 2016 – Africans must increase their participation in the continent’s natural resource sectors in order to boost the amount of rent accruing to the continent from its abundant resources, create employment and heighten the developmental impact on national economies, Dr. Benedict Oramah, President of the African Export-Import Bank (Afreximbank), said in London yesterday.
“It is mind boggling for a continent that accounts for more than 10 per cent of total global oil reserves to only receive less than 3 per cent of the over $3 trillion global oil revenue,” said Dr. Oramah at a reception organized by the Orion Group during the International Petroleum Week.
He added that although Africa accounts for about 50 per cent of global gold production, its export receipts from the precious metal amounted to less than 4 per cent of the more than $300 billion global gold export earnings.
Recognising the urgent need to address this disparity, Afreximbank was working to support the emergence of strong African Champions to lead the economic transformation of the continent, said the President who added that the Bank had designed a special African Content Support Programme to facilitate the active involvement of African entities in the natural resource supply chains across the continent.
The programme provides financing to African entities in their bidding, acquisition of concessions or service contracts in key extractive industries and participation in the trading of the commodities, he said.
Commending the Orion Group for being the largest wholly-owned African oil trading company, the President said that the company was an example of an African-owned entity making a big difference, adding that that was why Afreximbank had extended support amounting to some $1 billion to its operations in Africa through the Bank’s syndicate partners.
Afreximbank’s other recent financing transactions in the natural resources sector include a $663-million syndicated reserve base lending facility for Eroton for the acquisition of an oil mining lease in Nigeria and a $65-million facility to El Sewedy Electric for the purchase of payment instruments.
Afreximbank President Dr. Benedict Oramah (left) in handshake with Lucien Ebata, Chief Executive Officer of the Orion Group
Media Contact: Fleur Tchibota (ftchibota@afreximbank.com; Tel. +202-2456-4260)
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About Afreximbank:
The African Export-Import Bank (Afreximbank) is the foremost Pan-African multilateral financial institution devoted to financing and promoting intra- and extra-African trade. The Bank was established in October 1993 by African governments, African private and institutional investors, and non-African investors. Its two basic constitutive documents are the Establishment Agreement, which gives it the status of an international organization, and the Charter, which governs its corporate structure and operations. Since 1994, Afreximbank has approved almost $35 billion in credit facilities for African businesses, including about $4.5 billion in 2014. Afreximbank is headquartered in Cairo. For more information, visit: www.afreximbank.com