The Africa Finance Corporation and Turk Eximbank are working together to boost trade and infrastructure investment between Africa and Turkey.
- 10:47 am
- October 17, 2023
Africa Finance Corporation (AFC), a prominent infrastructure solutions provider in Africa, and Türk Eximbank, the official export credit agency of Turkey, have formally entered into an agreement to enhance collaboration, investment, and trade between Turkey and Africa. This significant partnership was established during the 4th Turkey-Africa Business & Economic Forum in Istanbul.
Under this collaboration, AFC and Türk Eximbank will jointly finance cross-border trade and infrastructure projects connecting Turkey and Africa. This financial support will be facilitated through various means, including credit lines, risk-sharing, guarantees, co-financing, and extending loan tenors. Additionally, the partnership will focus on sharing knowledge through advisory services, staff exchange programs, and jointly organizing seminars and conferences on trade and infrastructure development.
The collaboration is a milestone achievement that builds on the longstanding relationship between Africa and Turkey. This partnership is driven by their shared economic interests, with the goal of advancing South-South cooperation and promoting inclusive and sustainable development. Turkey has become one of Africa’s prominent development and trade partners, with trade volumes increasing from $5.4 billion in 2003 to $40.7 billion in 2022.
Furthermore, Turkish companies have been involved in projects across Africa, with a total contract value surpassing $85 billion in 2022. Türk Eximbank has played a pivotal role in facilitating the presence of many renowned Turkish contractors in Africa by providing financing for critical infrastructure and construction projects, such as those in Ethiopia, Senegal, and Cameroon. Turkish contractors, having gained extensive experience through Türk Eximbank’s support, have subsequently taken on additional projects, contributing to Africa’s development even without requiring further financing from the bank.
AFC’s President and CEO, Samaila Zubairu, expressed his satisfaction with the strengthening of their already robust relationship with Türk Eximbank, an institution that shares a common vision for accelerating Africa’s journey towards a prosperous future. The framework of their partnership aims to facilitate increased bilateral trade and infrastructure investment between Turkey and Africa. It places a strong emphasis on leveraging Africa’s abundant natural resources to enhance value creation, foster local employment, and drive rapid industrialization across the continent.
Mr. Ali Güney, the CEO of Türk Eximbank, highlighted the significant role that Türk Eximbank plays in its operations on the African continent. He expressed his enthusiasm for signing the Memorandum of Understanding (MoU) with AFC, an institution highly regarded for its commitment to Africa’s sustainable development. Mr. Güney is confident that this MoU will further strengthen their partnership, creating a mutually beneficial relationship that will contribute to increased trade volumes and the development of the continent.
In recent years, AFC has closely collaborated with renowned Turkish Engineering Procurement and Construction (EPC) firms to finance and develop transformative infrastructure projects in Africa. These projects include 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. Additionally, the corporation has established positive working relationships with the Foreign Economic Relations Board of Turkey (DEİK) and the Turkish Contractors Union. This collaboration has involved joint efforts, such as organizing a webinar on infrastructure investment for Turkish companies in 2021 and facilitating ongoing Turkish investments in Africa.
