African Export-Import Bank (Afreximbank) has signed a $450 million global credit facility agreement with ARISE Integrated Industrial Platforms (ARISE IIP), a developer and operator of industrial parks across Africa. The financing will support the development of industrial parks and Special Economic Zones (SEZs) while providing trade finance for businesses within ARISE IIP’s ecosystem.
The facility is part of a larger $800 million funding plan aimed at promoting industrialisation across the continent. The agreement will support the development of industrial parks in several African countries, including Nigeria, Côte d’Ivoire, Chad, Kenya, the Democratic Republic of Congo (DRC), and Malawi.
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Allocation of funds
Under the agreement, ARISE IIP will allocate $300 million to finance working capital requirements for existing industrial parks, including:
- GDIZ-Benin
- PIA-Togo
- LAHAM TCHAD-Chad
- PEIA-Côte d’Ivoire
- BSEZ-Rwanda
The funds will also support capital expenditure for the development of new industrial parks in DRC, Kenya, Chad, Nigeria, and Côte d’Ivoire.
The remaining $150 million will be used to establish an industrial park in Lilongwe, Malawi, and provide trade finance for ARISE IIP’s export trading company in the country under Afreximbank’s Export Agriculture for Food Security initiative.
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Strategic objectives and industrialisation agenda
Kanayo Awani, Executive Vice President, Intra-African Trade and Export Development at Afreximbank, signed the agreement on behalf of the bank. Arvind Arora, Chief Treasury Officer, represented ARISE IIP.
Kanayo Awani stated: “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 remarked: “The $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 $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.”
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Impact on industrialisation and economic growth
The financing is expected to facilitate the attraction of 230 tenants, generating an estimated $1.7 billion in investment over the next five years. Exports from the new industrial parks and SEZs are projected to reach $5 billion within the same period, with domestically sourced goods and services accounting for $3.4 billion.
The investment is also anticipated to create 32,000 direct jobs and 138,000 indirect jobs, contributing to employment growth across the continent.
Afreximbank and ARISE IIP collaboration
Afreximbank and ARISE IIP have collaborated on multiple industrialisation initiatives. This includes the $5 billion Africa Textile Renaissance Plan, aimed at transforming 500,000 metric tonnes of African cotton and generating 500,000 jobs.
Additionally, Afreximbank’s development impact investment arm, the Fund for Export Development in Africa (FEDA), invested $300 million in ARISE IIP’s latest fundraising round. The round, concluded in October 2024, secured a total of $443 million.
The partnership between Afreximbank and ARISE IIP continues to play a crucial role in Africa’s industrialisation drive, supporting infrastructure development, job creation, and economic transformation.
