ARISE IIP secures $450 million Afreximbank facility for industrial parks, Special Economic Zones development
Summary
This financing will support the development of industrial parks and Special Economic Zones (SEZ), while also providing crucial trade finance support to businesses operating within the ARISE IIP ecosystem.The US$ 450 million, granted in the context of Afreximbanks strategic objective of promoting, facilitating, and supporting Africas industrialisation ecosystems, is part of a proposed US$ 800-million facility to support ARISE IIP in developing Industrial Parks (IPs) and SEZs in such countries as Nigeria, Cote dIvoire, Chad, Kenya, Democratic Republic of Congo (DRC) and Malawi, among others.Under the terms of the facility agreement, ARISE IIP will deploy US$ 300 million to finance working capital requirements for its operating Industrial Parks (GDIZ-Benin, PIA-Togo, LAHAM TCHAD-Chad, PEIA-Cote dIvoire and BSEZ-Rwanda) and for capital expenditures for the development of new industrial parks in DRC, Kenya, Chad, Nigeria and Cote dIvoire.ARISE IIP will deploy the remaining US$ 150 million to develop an industrial park in Lilongwe, Malawi, and as trade finance for the activities of its export trading company in Malawi under Afreximbanks Export Agriculture for Food Security initiative.Signing the agreement on behalf of ARISE IIP was Arvind Arora, the Chief Treasury Officer, while Kanayo Awani, Executive Vice President, Intra-African Trade and Export Development, signed on behalf of Afreximbank.Kanayo Awani, Executive Vice President, Intra-African Trade and Export Development Bank said: The facility reflects Afreximbanks ongoing commitment to mobilising financial and technical resources towards the promotion of industrialisation across Africa. With ARISE IIP as an established developer and operator of IPs and SEZs on the continent, we are confident that this facility will contribute to supporting the continental industrialisation agenda.Arvind Arora, Chief Treasury Officer of ARISE IIP remarked: The US$450 million facility represents a major step forward in supporting Africas industrialisation efforts. Africas infrastructure investment gap, currently exceeding US$100 billion annually, significantly impacts the continents living conditions and its global competitiveness. The collaboration has seen the Bank and Arise working together on various projects including a USD 5 Billion Africa Textile Renaissance Plan, which intends to create 500,000 MT of African cotton transformation capacity and 500,000 jobs.The Fund for Export Development in Africa (FEDA), Afreximbanks development impact investment arm, invested USD 300 million in the latest fundraising round, which concluded in October 2024. www.Afreximbank.comAbout FEDA (Fund for Export Development in Africa): The Fund for Export Development in Africa (FEDA) (https://apo-opa.co/3F2Rttw) is the impact investment subsidiary of the African Export-Import Bank (Afreximbank or the Bank) set up to provide equity, quasi-equity, and debt capital to finance the multi-billion-dollar funding gap (particularly in equity) needed to transform the Trade sector in Africa.FEDA pursues a multi-sector investment strategy along the intra-African trade, value-added export development, and manufacturing value chain which includes financial services, technology, consumer and retail goods, manufacturing, transport&logistics, agribusiness, as well as ancillary trade enabling infrastructure such as industrial parks.