Somali Magazine October 17, 2023-Africa Finance Corporation (AFC) and the Export Credit Bank of Türkiye (Türk Eximbank) have signed an agreement to increase inter-regional cooperation, investment, and trade between Türkiye and Africa.
The agreement was signed on the sidelines of the just concluded 4th Türkiye -Africa Business & Economic Forum in İstanbul.
Through this partnership, AFC and Türk Eximbank will jointly finance cross-border trade and infrastructure investments between Türkiye and Africa, through mechanisms including credit lines, risk participation, guarantees, co-financing, and tenor extension. The partnership will also be aimed at knowledge exchange through advisory services, staff exchange programs, and jointly hosted seminars and conferences on trade and infrastructure development.
This collaboration stems from long-standing relations between Africa and Türkiye, spurred by their shared economic interests to accelerate South-South cooperation and promote inclusive and sustainable development.
Türkiye is considered one of the leading development and trading partners of Africa, with trade volumes reaching US$40.7 billion in 2022, up from US$5.4 billion in 2003. In addition, the total contract value of projects undertaken by Turkish companies across Africa topping US$85 billion in 2022.
Türk Eximbank has played a leading role in the presence of many eminent Turkish constructors for the first time in the Continent by financing important infrastructure and superstructure projects in countries including but not limited to Ethiopia, Senegal, Cameroon. The Turkish contractors, who gained extensive experience in Africa through transactions financed by Turk Eximbank, have subsequently taken on additional projects that have contributed to the development of Africa without requiring the Bank’s financing.
AFC President & CEO, Samaila Zubairu commented, “We are pleased to deepen our already strong relationship with Türk Eximbank, an institution that shares a similar vision to accelerate Africa’s path to a prosperous future. Our partnership framework will pave the way for increased bilateral trade and infrastructure investment between Türkiye and Africa with a focus on beneficiating Africa’s abundant natural resources to increase value capture, create local jobs and drive rapid industrialisation on the continent”.
Mr. Ali Güney, the CEO of Türk Eximbank stated, “As Türk Eximbank gives utmost importance to its operations on the African Continent, we are more than happy to sign this MoU with AFC, one of the most distinguished institutions regarding Africa’s sustainable development. I am confident that this MoU will be another step to strengthen our relationship with AFC based on a win-win partnership. Our collaboration on concrete projects will be mutually beneficial in terms of increasing trade volumes and contribution to the continent’s development.”
In recent years, AFC has been working closely with several renowned Turkish Engineering Procurement and Construction (EPCs) to finance and develop transformational infrastructure projects in Africa, including a 300 MW Combined Cycle Gas (CCG) plant in Senegal, and the development and construction of an 80MW peat fired Independent Power Project (IPP) in Rwanda. The Corporation also enjoys a good working relationship with the Foreign Economic Relations Board of Turkey (DEİK) and Turkish Contractors Union, organising a joint infrastructure investment webinar for Turkish companies in 2021 and ongoing facilitation of Turkish investments into Africa.