Africa Finance Corporation and Turk Eximbank collaborate to increase trade and infrastructure investment between Africa and Türkiye
Istanbul, 16 October 2023: Africa Finance Corporation (AFC), the continent’s leading infrastructure solutions provider, and the Export Credit Bank of Türkiye (Türk Eximbank), Türkiye’s official export credit agency today 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 landmark 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. Today, 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 for 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 (EPC)s 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.
About AFC
AFC was established in 2007 to be the catalyst for private sector-led infrastructure investment across Africa. AFC’s approach combines specialist industry expertise with a focus on financial and technical advisory, project structuring, project development, and risk capital to address Africa’s infrastructure development needs and drive sustainable economic growth.
Sixteen years on, AFC has developed a track record as the partner of choice in Africa for investing and delivering on instrumental, high-quality infrastructure assets that provide essential services in the core infrastructure sectors of power, natural resources, heavy industry, transport, and telecommunications. AFC has 42 member countries and has invested US$12.7 billion across Africa since inception.
About Türk Eximbank
Türk Eximbank was established in 1987 as Türkiye’s official export credit agency and began to implement its programs at the beginning of 1988. Turk Eximbank meets the financial needs of Turkish exporters through a vast array of credit, guarantee and insurance programmes, acting as a one-stop-shop. When doing so, the Bank serves an extensive lineup of customers ranging from domestic manufacturers to contractors active in foreign countries, and from those involved in the tourism industry to those providing FX earning services.
Media Enquiries:
Yewande Thorpe
Communications
Africa Finance Corporation
Mobile : +234 1 279 9654
Email : yewande.thorpe@africafc.org
Gavin Serkin
New Markets Media & Intelligence
Telephone: +44 20 3478 9710
Email: gserkin@newmarkets.media
F. Zehra Sayar
International Loans and Relations Director
Telephone: +90 216 6665811
E-mail: international@eximbank.gov.tr