DURBAN – KwaZulu-Natal heralded a new era in infrastructure development and the financing of capital projects when the provincial government signed a landmark Memorandum of Understanding with the African Export-Import Bank (AFREXIMBANK).
Afreximbank is a reputable development financier based in Cairo, Egypt with African states and the African Development Bank as shareholders.
KwaZulu-Natal Premier Sihle Zikalala, accompanied by Economic Development, Tourourm and Environmental Affairs MEC, Ravi Pillay and Finance MEC Nomusa Dube-Ncube who is Leader of Government Business signed, virtually, the ground-breaking MOU. The MOU will see high-level co-operation between the two parties and is a culmination of over two years of groundwork between the Province and Afrixembank.
The agreement will see the giant bank channelling billions of rands to finance infrastructure projects within the province. Different projects to the value of more than R20 billion have already been presented by KwaZulu-Natal for consideration and funding by the bank.
The agreement will also see the bank partnering with KZN in the marketing of export opportunities on the African continent.
Speaking at the signing of the MOU, Premier Zikalala said the MOU between the KwaZulu Natal Provincial Government and the AFREXIMBANK) was a very significant milestone that opens opportunities for both the private and public sectors to increase trade across the continent.
“We welcome this opportunity to work closely with the AfreximBank which will see our state-owned enterprises improving their capacity to move into the rest of Africa to invest and to seek and strengthen partnerships", remarked the Premier.
Premier Zikalala emphasised that the event was a significant beginning in economic relations between KwaZulu-Natal and fellow cities, provinces and countries on the continent. He said this was a day when the province set sail on a ship that is AfreximBank with its four strategic pillars which are to “Promote Intra-African Trade,” “Facilitate Industrialization and Export Development,” “Strengthen Trade Finance Leadership” and “Improve Financial Performance and Soundness”.
“We join hands with one of the most reliable partners in the AfreximBank, the Pan-African multilateral financial institution with the mandate of financing and promoting intra-and extra-African trade. As stated in the MOU, KZN will collaborate with AfreximBank on the promotion of joint projects and opening opportunities for organisations like Dube Trade Port and Richards Bay Industrial Deevelopment Zone".
Premier Zikalala said this will include providing projects for finance and facilitation by the Bank. The Bank will become an important financial services partner for eligible public and private sector trade and trade enabling infrastructure transactions in the province.
“According to the agreement the Bank will consider supporting events such as the KZN Export Week or similar events hosted by the Province. We look to the Bank to play its part in showcasing the Province as investment-centric with opportunities in multi-sectors for investors to make foreign direct investments to the Province,” he said.
AFREXIMBANK was established in October 1993 and is owned by African governments, the African Development Bank and other African multilateral financial institutions as well as African and non-African public and private investors.
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