By Dipo Olowookere

The expansion drive Africa’s richest man, Mr Aliko Dangote, recently received a further boost when he secured credit facilities from one of the top lenders in the continent.

Business Post gathered that Mr Dangote’s firm, Dangote Industries Limited (DIL), signed a memorandum of understanding (MoU) with the African Export–Import Bank (Afreximbank).

This deal was sealed at the 24th Annual General Meeting (AGM) of the bank taking place in Kigali, the Rwandan capital.

It was gathered that the agreement, which is for credit facilities, “may be granted by Afreximbank to Dangote Industries Limited and its subsidiaries in an aggregate amount of up to $1 billion.”

The MoU was signed on behalf of Afreximbank by Dr Benedict Oramah, President and Chairman of the Board of Directors; and Mr Dangote on behalf of Dangote Industries Limited.

Information gathered by our correspondent revealed that agreement provides for collaboration between Afreximbank and DIL in respect of proposed funding of transactions, which may involve the provision of short and long-term liabilities for trade-related projects in Africa.

Also, the utilization of the facility is expected to boost intra-African trade volumes, enhance continental value chains and increase production and export of goods and services across Africa.

Dangote Industries Limited is one of the largest business conglomerates in Africa having various manufacturing and service industries including cement, sugar, packaging materials amongst others.

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, it has approved more than $51 billion in credit facilities for African businesses, including about $10.3 billion in 2016.

Afreximbank, headquartered in Cairo, Egypt, had total assets of $9.4 billion as at 30 April 2016 and is rated BBB+ (GCR), Baa1 (Moody’s), and BBB- (Fitch).

Businesspostng