The African Export-Import Bank has pledged to promote the automotive industry in Africa.
The bank made the pledge in a Memorandum of Understanding signed with the African Association of Automotive Manufacturers, according to a joint statement issued by both parties on Thursday.
It said the partnership aims to boost regional automotive value chains and finance the automotive industry, adding that it would also support the development of enabling policies, technical assistance and capacity building initiatives.
The parties also pledged to work together to foster the emergence of regional value chains.
“To support the emergence of the African automotive industry, they will collaborate to provide financing to industry players along the whole automotive value chain.
“The potential interventions include lines of credit, direct financing, project financing, supply chain financing, guarantees, and equity financing. This is to harmonise automotive standards across the continent and develop an automotive-focused training programme for the public and private sectors,” it stated.
The President of Afreximbank, Prof. Benedict Oramah, was quoted as saying, “The strategic partnership with AAAM would facilitate implementation of the bank’s automotive programme.
“The automotive programme aims to catalyse development of the automotive industry in Africa as the continent commences trade under the African Continental Free Trade Area.
It also quoted the Chief Executive Officer of AAAM, David Coffey, to have added, “The signing of the MoU with Afreximbank was an exciting milestone for the development of the automotive industry in Africa.
“At the 2020 digital Africa Auto Forum, the lack of affordable financing available for the automotive sector was identified as one of the key inhibitors for the growth and development of the automotive industry in Africa.”