The United Bank for Africa (UBA) has signed a US$100mn-equivalent multi-currency framework agreement with HSBC specifically for imports into Africa.
The facility will be available to UBA customers in all African countries and can be drawn down in all major currencies, including US dollars, British pounds, euros and Japanese yen.
UBA is looking to increase the import of capital goods into Africa for agri-business, construction, energy and telecoms sectors, amongst others.
The facility will initially cover imports from China, Canada, Australia and a number of European Union members, including France, Germany and the UK.
“The facility is backed by the export credit agencies of these countries which ensure that the costs of the transactions are kept to the barest minimum and indeed, cheaper than the traditional sources of funding such exports,” Emeka Echeazu, divisional head, international financial organisations at UBA explains.