The African Export-Import Bank (Afreximbank) and the Export-Import Bank of Korea (KEXIM) signed a memorandum of understanding (MoU) yesterday (Wednesday) to provide $100 million worth of funding to support trade between Africa and South Korea.
In terms of the deal, signed in Seoul, South Korea by Afreximbank president Dr Benedict Oramah and his KEXIM counterpart, Dr Lee Duk-Hoon, KEXIM will extend a $100 million loan to Afreximbank to support trade transactions.
The two parties will also explore the possibility of establishing other financing schemes to promote trade between South Korea and Africa, according to a joint statement.
Oramah said the credit facility was ‘timely’ given Afreximbank’s current focus on financing importation of capital goods to accelerate the structural transformation of African economies.
In 2015, Africa’s imports from South Korea stood at about US$9.8 billion, down from US$13 billion in 2014, while the continent’s exports to South Korea also declined to US$5.8 billion in 2015, from US$7.9 billion the previous year.
