Afreximbank, KEXIM seal $100m Africa trade pact

The volume of trade deals between African countries and the South Korea would soon record increased numbers courtesy of a $100 million deal sealed in Seoul, on wednesday.

Specifically targeted at export and import transactions between the continent’s economies and the Asian country, the African Export-Import Bank (Afreximbank) and the Export-Import Bank of Korea (KEXIM) have entered into a Memorandum of Understanding (MoU).

KEXIM was established in 1976, to support South Korea’s export-led economy by providing loans and financing mega projects, thereby facilitating economic cooperation with other countries and regions.

In 2015, Africa’s imports from South Korea stood at approximately $9.8 billion compared to $13 billion in 2014, while the continent’s exports to South Korea amounted to $5.8 billion in 2015 and $7.9 billion in 2014.

Under the terms of the MoU signed by Afreximbank’s President, Dr. Benedict Oramah, and his KEXIM counterpart, Dr. Lee Duk-Hoon, the Asian bank will make available a credit line of up to $100 million to Afreximbank.

The credit will support trade transactions between South Korea and the African continent as part of a commitment by the two institutions to cooperate in matters of common interest.