On April 11, the Indonesia Eximbank and the Cairo, Egypt-based African Export-Import Bank (Afreximbank) jointly pledged $100 million to help improve businesses and trade between Indonesia and the African continent.
Amr Kamel, Executive Vice President, Business Development and Corporate Banking, Afreximbank, (2nd left) and Sinthya Roesly, Executive Director and Chairman, Indonesian Eximbank (3rd left), joined by (L-R): Afolabi Obisesan, Manager, Guarantees & Specialized Finance, Afreximbank; Dwi Wahyudi, Managing Director, Business Development, Indonesia Eximbank; and T. Dyza R.A Rochadi, Corporate Secretary, Indonesia Eximbank, following the signing ceremony. Photo: Afreximbank
The agreement, signed on the sidelines of the Indonesia-Africa Forum, will support African imports from Indonesia and African exports to Indonesia in order to stimulate increased trade flows between Africa and Indonesia and spur economic growth and development.
Amr Kamel, Executive Vice President, Business Development and Corporate Banking, signed the agreement on behalf of Afreximbank while Sinthya Roesly, Chairman and Executive Director of Indonesia Eximbank, signed on behalf of her institution.
Under the terms of the agreement, Afreximbank will work with Indonesia Eximbank in supporting import of capital equipment and services from Indonesia by African private sector entities through an overseas financing arrangement, with Indonesia Eximbank providing direct financing to African buyers of Indonesian goods and services on the back of a guarantee provided by Afreximbank.
Indonesia Eximbank will also provide financing support to Indonesian buyers of African goods, with Afreximbank acting as the Bank of the African exporters. In addition, Indonesia Eximbank will support short-term trade transactions emanating from African buyers of Indonesian products, including through provision of confirmation lines to the African Banks on the back of a trade confirmation guarantee facility provided by Afreximbank.
Mr. Kamel said the agreement could make an important contribution to the “economic development of our respective regions by leveraging the capabilities of our respective institutions to promote and finance trade between Indonesia and Africa, thereby enhancing South-South trade”.