Enterprise Singapore (EnterpriseSG) and the African Export-Import Bank (Afreximbank) have signed an agreement to improve access to financing for Singaporean companies looking to expand into Africa.
This marks the first partnership between EnterpriseSG and a multilateral development bank, under the Enterprise Financing Scheme – Multilateral Development Banks (EFS-MDB).
The partnership will allow Singaporean businesses to tap into new financing options from one of Africa’s key lenders as they venture into the continent.
Through the EFS-MDB, EnterpriseSG offers risk-sharing of up to 50% to support lending from partner multilateral development banks.
The partnership will cover financing needs such as working capital, fixed assets, trade, projects, and mergers & acquisitions.
“Our collaboration with Afreximbank not only helps Singapore companies secure new sources of financing for their trade and internationalisation projects in Africa; it will also allow companies to speed up understanding of the various countries and seek potential partners through the bank’s deep institutional knowledge and extensive networks. Conversely, we hope that Singapore companies’ trade and investment activities can add value to the industrialisation and export development in Africa,” said Mr Geoffrey Yeo, Assistant Managing Director for Capabilities, Urban Systems & Solutions at EnterpriseSG.
Afreximbank’s strategy aims to drive the expansion and diversification of African trade while increasing the region’s share of global commerce.
“Afreximbank is committed to fostering greater connectivity between Africa and global markets. This partnership with Enterprise Singapore represents a significant step towards unlocking new trade and investment opportunities for Singaporean companies in Africa. Afreximbank represents a gateway to Africa for Singaporean entities, providing access to tailored financing and de-risking solutions while leveraging our expertise, knowledge, and goodwill across the continent. In this regard, we support the growth of Singaporean businesses while driving Africa’s industrialisation and trade development,” said Mr Haytham ElMaayergi, Executive Vice President for Global Trade Bank at Afreximbank.
In addition to financing, Singaporean businesses can use Afreximbank’s Africa Trade Gateway, a digital matchmaking platform connecting them with partners, investors, and financiers across Africa.
With a population of about 1.5 billion, Africa is rich in natural resources and has a vibrant private sector. Its rapid urbanisation and growing consumer market present opportunities for Singaporean companies in trade, digitalisation, sustainability, and urban solutions.
The African Continental Free Trade Area (AfCFTA), which unites 54 African countries into a single market, further enhances trade prospects across various sectors.
