The Arab Bank for Economic Development in Africa (BADEA) has granted a US$50mn line of credit to the African Export-Import Bank (Afreximbank) for the financing of trade operations between Arab and African countries.

The line of credit was one of two agreements signed by the two institutions during a visit to the BADEA headquarters in Khartoum by an Afreximbank delegation. The second is a memorandum of understanding providing a framework for co-operation in “promoting the economic and social development of African countries through the funding of private sector projects and trade finance operations”, reads a statement issued by Afreximbank.

According to BADEA, the line of credit, which is part of its programme for financing foreign trade, will target sectors such as energy, industry and agriculture.

In a statement, Afreximbank president Benedict Oramah says that the signing of the line of credit demonstrates BADEA’s commitment to working with Afreximbank to develop the African continent and promote Arab-Africa trade.

The two institutions are expected to create instruments and programmes to accelerate Arab-Africa trade and investment, Oramah adds.