The African Export-Import Bank (Afreximbank) has disbursed USD 120 million financing facility to Djibouti’s Great Horn Investment Holding (GHIH) for development projects in Djibouti’s Damerjog Industrial Development Free Trade Zone.
The funds will be used to complete the Damerjog Oil Jetty and construct an oil storage depot.
Afreximbank President Prof. Benedict Oramah said, “The crucial contribution of this landmark deal lies in its potential to deliver a boost to the development of the industrial capacity of Djibouti and its neighbors by assuring the implementation of critical trade enabling infrastructure to support bulk handling of liquid products.”
The deal aims to support Djibouti’s plans to become a regional trans-shipment and logistics hub. It will boost Djibouti and neighboring countries’ industrial capacity by providing infrastructure to handle liquid products in bulk.
Afreximbank aims to support African companies executing infrastructure projects in Africa through deals like this. The bank has financed over seven billion dollars worth of engineering projects over the past 6 years.
GHIH Chairman Aboubaker Hadi Omar said the deal with Afreximbank will help position Djibouti as a commercial and logistics hub. He said it shows Djibouti’s 2035 vision of transforming the country is taking place.
Recently the Afrexim Bank has begun to become involved in East Africa beyond its previous emphasis on western and northern Africa. Last year, it gave a credit guarantee worth over USD 700 million for Ethiopia’s procurement of trucks.