The deal was part of the bank’s goal of expanding businesses in Africa through the disbursement of N9 trillion ($25) billion in the next five years.
The Memorandum of Understanding (MOU) on the credit facility, which was signed at the 24 Annual General Meeting of the Bank in Kigali, Rwanda, stated as part of the bank’s move to empower and expand viable businesses in Africa through payout of $25 billion in the next five years.
Dr Paul Oramah, the President of the bank said that “the deal was part of the bank’s bid to expand businesses in Africa through the disbursement of N9 trillion ($25) billion in the next five years.”
“The bank, had set for itself target of strengthening businesses in various sectors of the economy within the region to bring a major change in the prevailing situation whereby once there was a crash in commodity prices, it would send economies of most countries into recession,” he stated.
Oramah also commended the President of Dangote Group, Alhaji Aliko Dangote for his business development quest across the continent.
Mr Aliko Dangote thanked the bank for the loan and stated that it would be deployed towards the expansion of the group’s investment in Africa.
He further stated that the group, at present, had investments in 14 African countries adding that its main business in those countries was cement.
The bank also during the event signed a MOU of $100 million facility for Hiers Holdings to expand its cross-borders investment programme in 20 African countries in major sectors – Energy, financial services, real estate and hospitality.
In June 2016, Dangote Group acquires a Class B equity stake in the regional bank. According to information on the deal, Dangote Group was said to be one of the single largest private investors AFREXIM bank.