ARISE IIP secures $450 million Afreximbank facility for industrial parks, Special Economic Zones development

In a significant move aimed at boosting industrial development across Africa, African Export-Import Bank (Afreximbank) (www.Afreximbank.com) signed a US$450 million global credit facility with ARISE IIP, the leading pan-African developer and operator of world-class industrial parks. This financing will support the development of industrial parks and Special Economic Zones (SEZ), while also providing crucial trade finance support to businesses operating within the ARISE IIP ecosystem. 

The US$ 450 million, granted in the context of Afreximbank’s strategic objective of promoting, facilitating, and supporting Africa’s industrialisation ecosystems, is part of a proposed US$ 800-million facility to support ARISE IIP in developing Industrial Parks (IPs) and SEZs in such countries as Nigeria, Cote d’Ivoire, Chad, Kenya, Democratic Republic of Congo (DRC) and Malawi, among others. 

Under the terms of the facility agreement, ARISE IIP will deploy US$ 300 million to finance working capital requirements for its operating Industrial Parks (GDIZ-Benin, PIA-Togo, LAHAM TCHAD-Chad, PEIA-Cote d’Ivoire and BSEZ-Rwanda) and for capital expenditures for the development of new industrial parks in DRC, Kenya, Chad, Nigeria and Cote d’Ivoire. 

ARISE IIP will deploy the remaining US$ 150 million to develop an industrial park in Lilongwe, Malawi, and as trade finance for the activities of its export trading company in Malawi under Afreximbank’s Export Agriculture for Food Security initiative. 

Signing the agreement on behalf of ARISE IIP was Arvind Arora, the Chief Treasury Officer, while Kanayo Awani, Executive Vice President, Intra-African Trade and Export Development, signed on behalf of Afreximbank. 

Kanayo Awani, Executive Vice President, Intra-African Trade and Export Development Bank said: “The facility reflects Afreximbank’s ongoing commitment to mobilising financial and technical resources towards the promotion of industrialisation across Africa. This is our way of supporting value addition and structural transformation of African economies. We remain eager to collaborate with key stakeholders to build trusted partnerships and to industrialise African countries. Afreximbank strongly believes that IPs and SEZs are veritable tools that Africa can deploy to fast-track industrial infrastructure development and to promote intra-African trade and export development. With ARISE IIP as an established developer and operator of IPs and SEZs on the continent, we are confident that this facility will contribute to supporting the continental industrialisation agenda.” 

Arvind Arora, Chief Treasury Officer of ARISE IIP remarked: “The US$450 million facility represents a major step forward in supporting Africa’s industrialisation efforts. This financing covers critical working capital and capital expenditure needs across various countries, addressing the diverse requirements for industrial development. Africa’s infrastructure investment gap, currently exceeding US$100 billion annually, significantly impacts the continent’s living conditions and its global competitiveness. At ARISE IIP, we are committed to working with strategic partners around the world to bridge this gap and accelerate industrialisation across the continent.” 

The development of the new IPs and SEZs, along with the expansion of activities in the existing IPs, is expected to result in the attraction of 230 tenants, bringing in an estimated investment of US$ 1.7 billion over the next five years, while total exports from the new IPs and SEZs, once in operation, would reach US$ 5 billion over the five-year period, with domestically-sourced goods and services reaching US$ 3.4 billion. 

In addition, the new investments in the IPs and SEZs are expected to contribute to the creation of 32,000 direct jobs and 138,000 in-direct jobs. 

Afreximbank has been working with ARISE IIP as a strategic partner, focusing on industrialisation initiatives across Africa. The collaboration has seen the Bank and Arise working together on various projects including a USD 5 Billion Africa Textile Renaissance Plan, which intends to create 500,000 MT of African cotton transformation capacity and 500,000 jobs. 

The Fund for Export Development in Africa (FEDA), Afreximbank’s development impact investment arm, invested USD 300 million in the latest fundraising round, which concluded in October 2024. During this round, Arise IIP raised a total of USD 443 million. 

Distributed by APO Group on behalf of Afreximbank.

Contact details: 
Vincent Musumba 
Manager, Communications and Events (Media Relations) – Afreximbank 
press@afreximbank.com   

Audrey Mebaley 
Global Head of communications – Arise IIP 
audrey.mebaley@arisenet.com   

About Afreximbank: 
African Export-Import Bank (Afreximbank) is a Pan-African multilateral financial institution mandated to finance and promote intra-and extra-African trade. For over 30 years, the Bank has been deploying innovative structures to deliver financing solutions that support the transformation of the structure of Africa’s trade, accelerating industrialization and intra-regional trade, thereby boosting economic expansion in Africa. A stalwart supporter of the African Continental Free Trade Agreement (AfCFTA), Afreximbank has launched a Pan-African Payment and Settlement System (PAPSS) that was adopted by the African Union (AU) as the payment and settlement platform to underpin the implementation of the AfCFTA. Working with the AfCFTA Secretariat and the AU, the Bank is setting up a US$10 billion Adjustment Fund to support countries effectively participating in the AfCFTA. At the end of December 2023, Afreximbank’s total assets and contingencies stood at over US$37.3 billion, and its shareholder funds amounted to US$6.1 billion. Afreximbank has investment grade ratings assigned by GCR (international scale) (A), Moody’s (Baa1), Japan Credit Rating Agency (JCR) (A-) and Fitch (BBB). Afreximbank has evolved into a group entity comprising the Bank, its impact fund subsidiary called the Fund for Export Development Africa (FEDA), and its insurance management subsidiary, AfrexInsure (together, “the Group”). The Bank is headquartered in Cairo, Egypt. www.Afreximbank.com  

About FEDA (Fund for Export Development in Africa): 
The Fund for Export Development in Africa (“FEDA”) (https://apo-opa.co/3F2Rttw) is the impact investment subsidiary of the African Export-Import Bank (“Afreximbank” or the “Bank”) set up to provide equity, quasi-equity, and debt capital to finance the multi-billion-dollar funding gap (particularly in equity) needed to transform the Trade sector in Africa. 

FEDA pursues a multi-sector investment strategy along the intra-African trade, value-added export development, and manufacturing value chain which includes financial services, technology, consumer and retail goods, manufacturing, transport&logistics, agribusiness, as well as ancillary trade enabling infrastructure such as industrial parks. www.FEDAGroup.org 

About ARISE IIP: 
ARISE Integrated Industrial Platforms (ARISE IIP) (https://apo-opa.co/43vSJzc) est un développeur et opérateur panafricain de parcs industriels de classe mondiale. Arise IIP identifie des opportunités dans les chaînes de valeur commerciales et industrielles à travers l’Afrique, conçoit, finance, construit et opère l’infrastructure nécessaire, jouant un rôle catalyseur pour soutenir les pays dans leur transition vers une économie industrielle. Animé par la recherche de la croissance verte l’ambition de Arise IIP est d’accompagner au développement du potentiel industriel du continent tout en neutralisant ses émissions de carbone et son impact climatique. ARISE IIP est actuellement présent dans 12 pays, dont le Bénin (GDIZ), le Togo (PIA), le Gabon (GSEZ), la Côte d’Ivoire (ZIC), le Nigéria (IPRFZ), la République du Congo (PIC), la République Démocratique du Congo (CIP), la Sierra Leone (SIZ), le Malawi (MIP), le Rwanda (BSEZ), le Tchad et le Cameroun. www.ARISEIIP.com 

The post ARISE IIP secures $450 million Afreximbank facility for industrial parks, Special Economic Zones development first appeared on Future Media News.

The post ARISE IIP secures $450 million Afreximbank facility for industrial parks, Special Economic Zones development appeared first on Future Media News.