OPS seeks deployment of trade facilities to cover infrastructure gaps

Members of the Organised Private Sector (OPS) have urged government to take advantage of available funding channels to address infrastructural gaps in the country.

Indeed, China Development Bank (CDB), in Changsha, China, had signed an agreement providing a $500-million facility to the African Export-Import Bank (Afreximbank) to enable the trade finance bank support trade enabling infrastructure projects across the continent.

The facility will also be used to support Afreximbank’s trade finance intermediaries to provide medium to long term financing for sub-projects in various sectors, including energy, telecommunication, transportation, agriculture, medical sector, industrial park or any related trade finance transactions. The facility carries a 10-year tenor.

According to the Nigerian Association of Chambers of Commerce, Industry, Mines and Agriculture (NACCIMA) good road and rail networks can significantly improve the standard of living of the people, improve the business environment and generally have positive effect on the economy.

“Efforts should therefore be made to complete the road and rail projects as promised by government.

And of course, good infrastructure will support the activities of 37 million Micro, Small and Medium Enterprises (MSMEs) who employ over 60 million people in Nigeria.

Hence the need for stringent implementation of these infrastructure projects”, NACCIMA’s National President, Iyalode Alaba Lawson said.

Director-General of the Lagos Chamber of Commerce and Industry (LCCI), Muda Yusuf noted that though relationship between China and Nigeria is being strengthened by the private sector, funds accessed from the institution can be deployed to key infrastructure in the country.

Vice Chairman and President of CDB, Zheng Zhijie Liu, and Prof. Benedict Oramah, President of Afreximbank, had signed the facility agreement on behalf of their two institutions during a ceremony held on the sidelines of the “4th Investing in Africa Forum” which took place in Changsha.

“This facility strengthens our capacity to realise our mandate and makes it possible for Afreximbank and CDB to achieve important development outcomes in Africa,” said Oramah.

“We are actively seeking to drive Africa’s development by working with partners to support employment creation, increased economic activities, and increased tax earnings for governments arising from increased commercial activities resulting in increased earnings and profitability”.

Prof. Oramah said that the facility would contribute to the promotion of South-South trade, particularly between China and Africa, while providing long-term funding which Afreximbank would transfer to its clients.