Lagos, Nigeria – The African Export-Import Bank (Afreximbank) has approved a series of landmark financing agreements, totaling over $370 million, to accelerate infrastructure development across Nigeria and other African nations. These deals, signed during the Intra-African Engineering, Procurement, and Construction (EPC) workshop in Lagos, aim to empower local African contractors and address the continent’s massive infrastructure deficit, which exceeds $100 billion annually.
The financing includes a $300-million global facility for Egypt’s Hassan Allam Construction, a $45-million term sheet for Pavifort Construction from Sierra Leone, and a $25-million term sheet for Africa Cement from Burkina Faso. These agreements mark a significant step in Afreximbank’s ongoing efforts to bridge Africa’s infrastructure gap by empowering homegrown construction firms to secure and execute large-scale projects within the continent.
Empowering Local Contractors to Compete
Afreximbank’s director of the Trade and Corporate Finance Unit, Ayman El-Zoghby, emphasized the bank’s commitment to facilitating the growth of African contractors by providing critical financial and technical support. Speaking at the workshop, El-Zoghby highlighted the Afreximbank-EPC Tenders Platform, which connects contractors with project opportunities and provides vital financial backing throughout the lifecycle of projects.
“Through initiatives like the EPC Tenders Platform, Afreximbank is working to address Africa’s infrastructure financing challenges by helping local contractors play a more prominent role in major projects,” El-Zoghby said. “Our aim is to promote long-term, self-sustained infrastructure growth by enhancing local capacity, fostering technology transfer, and encouraging collaboration between African and international firms.”
Tackling Africa’s $100 Billion Infrastructure Gap
The workshop brought together key stakeholders from the engineering, procurement, and construction (EPC) sectors, including financial institutions, government representatives, and legal experts from across Africa. Discussions focused on strategies to close Africa’s infrastructure financing gap and promote local content in large-scale construction projects, which have traditionally been awarded to non-African contractors.
Afreximbank’s approach includes working closely with governments to create stable environments for trade and investment, ensuring that African contractors have stronger negotiation power in international markets. The bank is also focused on enhancing skills development and promoting partnerships that will bolster Africa’s construction sector.
Testimonials Highlighting Impact
Several key figures at the event shared their appreciation for Afreximbank’s support:
- Moctar Mando, Chairman of COGEB Group International, expressed gratitude for Afreximbank’s financing, which will support the construction of a new cement plant in Burkina Faso as part of his company’s diversification strategy.
- Alimu Sanu Barrie, CEO of Pavifort Construction in Sierra Leone, noted that the $45 million term sheet would significantly boost his company’s capacity and contribute to Sierra Leone’s infrastructure and economic development.
- Mahmoud El Essawy, Managing Director of Hassan Allam Construction in Egypt, thanked Afreximbank for its crucial support in providing a $200 million facility, recently increased to $300 million, to help fund critical infrastructure projects in Egypt and across the continent.
Strategic Partnerships for Sustainable Growth
In addition to financing, the workshop focused on financing solutions, local content strategies, and creating opportunities for African contractors to participate in major infrastructure projects. Over 180 participants from West Africa, Egypt, Angola, and Uganda attended, representing EPC firms, financial institutions, government bodies, and international companies.
The workshop underscored Afreximbank’s commitment to supporting regional integration and economic growth by leveraging the construction sector as a driver of job creation, sustainable development, and long-term infrastructure stability across the continent.
Looking Ahead: Strengthening Africa’s EPC Capacity
The signing of the $370 million in deals represents a key milestone in Afreximbank’s ongoing efforts to transform Africa’s infrastructure landscape. The bank’s focus on enhancing local content, building capacity, and promoting African-led development solutions is set to play a pivotal role in shaping the future of the continent’s infrastructure sector.
As Africa continues to grapple with its infrastructure financing needs, Afreximbank’s strategy is positioning local contractors as central players in large-scale infrastructure projects, fostering a sustainable and self-reliant construction ecosystem.