Afreximbank signs US$50 million partnership with FONSIS to support project preparation activities in Senegal

African Export-Import Bank (Afreximbank) has signed a Memorandum of Understanding (MOU) with Fonds Souverain d’Investissements Stratégiques (FONSIS) to provide project preparatory capital to assist public and private sector investors to progress projects from concept stage to bankability in a timely manner in Senegal.

The agreement was signed on 16 November 2021 in Durban, South Africa on the sidelines of the second Intra-African Trade Fair (IATF 2021).

 

Afreximbank and FONSIS have established a Joint Project Preparation Facility (JPPF) which aims to mobilize up to US$50 million to accelerate the implementation of priority projects as outlined in the Government of Senegal’s national development plan dubbed “Plan for an Emerging Senegal (PES)”.

 

The two institutions will jointly support public and private sector investors to de-risk markets and sectors by availing financing and technical support services that will result in a steady supply of well-structured, market-ready projects. They will work together to support investors prepare projects in the following trade and investment-related sectors: Energy, Transport & Logistics, Logistical Platforms, Manufacturing, Agro-Processing, Hospitality & Tourism, Mining, Solid Minerals and Services, including Healthcare, ICT, and Creative Economy.

 

Afreximbank will also build the capacity of FONSIS to independently carry out project preparation and resource mobilisation activities, while making Senegal an attractive investment destination.

 

Mr. Amr Kamel, Afreximbank’s Executive Vice-President in charge of Business Development & Corporate Banking, commented:

 

“We are pleased to execute this Memorandum of Understanding with one of the continent’s leading sovereign wealth funds. This partnership is in line with Afreximbank’s mandate and strategic plan, as it supports industrialization and export development activities in Senegal in the context of the AfCFTA.

 

I am particularly pleased with the Joint Project Preparation Facility approach, which draws on the Bank’s technical expertise and FONSIS in-depth local knowledge to jointly finance priority trade and value-added export promotion projects. The intended outcome of this intervention is the supply of well-structured, market-ready projects that Afreximbank, FONSIS and the private sector can finance.”

 

Mr. Demba Diallo, Chief Executive Officer, FONSIS, commented:

 

“The signing of this MoU is in line with FONSIS’s desire to enter into project co-development agreements with the ambition of implementing a joint project preparation facility with anchor partners in the medium term. The co-development of projects with Afreximbank has the advantage of facilitating the mobilisation of the Bank’s various financial instruments in order to bring projects to successful financial closure.”

 

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