Afreximbank and ARISE IIP Forge US$450M Deal to Boost Africa’s Industrial Development

Signing the agreement on behalf of ARISE IIP was Chief Treasury Officer Arvind Arora, while Afreximbank was represented by Kanayo Awani, Executive Vice President, Intra-African Trade and Export Development.

In a landmark move to accelerate Africa’s industrialisation, the African Export-Import Bank (Afreximbank) has signed a US$450 million global credit facility agreement with ARISE Integrated Industrial Platforms (ARISE IIP), a leading pan-African developer and operator of world-class industrial parks. This financing aims to enhance the development of Industrial Parks (IPs) and Special Economic Zones (SEZs) across the continent, while also providing crucial trade finance support to businesses operating within the ARISE IIP ecosystem.

This financing is part of a broader US$800 million facility that Afreximbank has proposed to support ARISE IIP in fostering industrialisation in multiple African nations, including Nigeria, Côte d’Ivoire, Chad, Kenya, the Democratic Republic of Congo (DRC), and Malawi.

Deployment of Funds

Under the agreement, ARISE IIP will allocate US$300 million towards financing working capital for its existing Industrial Parks—GDIZ (Benin), PIA (Togo), LAHAM TCHAD (Chad), PEIA (Côte d’Ivoire), and BSEZ (Rwanda)—as well as capital expenditures for the development of new industrial parks in DRC, Kenya, Chad, Nigeria, and Côte d’Ivoire.

Additionally, US$150 million will be dedicated to the development of an industrial park in Lilongwe, Malawi, and as trade finance support for its export trading company in the country under Afreximbank’s Export Agriculture for Food Security initiative.

Strategic Vision for Africa’s Industrialisation

Signing the agreement on behalf of ARISE IIP was Chief Treasury Officer Arvind Arora, while Afreximbank was represented by Kanayo Awani, Executive Vice President, Intra-African Trade and Export Development.

Kanayo Awani underscored the importance of the facility, stating, “The agreement highlights Afreximbank’s steadfast commitment to mobilising financial and technical resources towards Africa’s industrialisation. Through this collaboration, we aim to add value and structurally transform African economies by fast-tracking industrial infrastructure development, promoting intra-African trade, and fostering export growth.”

Arvind Arora of ARISE IIP hailed the deal as a pivotal milestone, remarking, “Africa’s infrastructure investment gap, which exceeds US$100 billion annually, hampers the continent’s competitiveness and overall living standards. With this facility, we aim to address key financial needs for industrial development, ensuring that Africa meets its long-term economic goals. Our commitment to strategic partnerships like this will help bridge the gap and accelerate Africa’s industrial growth.”

Economic Impact and Job Creation

The investment is expected to attract approximately 230 tenants, generating an estimated US$1.7 billion in investment over the next five years. Additionally, exports from the newly established IPs and SEZs are projected to reach US$5 billion during this period, with domestically sourced goods and services contributing US$3.4 billion.

The initiative is also anticipated to create substantial employment opportunities, with an estimated 32,000 direct jobs and 138,000 indirect jobs to be generated across various sectors.

A Stronger Future for Africa’s Industries

Afreximbank and ARISE IIP’s strategic partnership extends beyond this latest agreement. The two entities have collaborated on multiple industrialisation initiatives, including the USD 5 billion Africa Textile Renaissance Plan, which aims to create 500,000 metric tons of African cotton transformation capacity and generate 500,000 jobs.

Furthermore, the Fund for Export Development in Africa (FEDA), Afreximbank’s development impact investment arm, played a crucial role in supporting ARISE IIP’s latest fundraising round, contributing USD 300 million to a total of USD 443 million raised in October 2024.

With this robust financial backing and strategic focus, the partnership between Afreximbank and ARISE IIP is set to drive transformative change across Africa’s industrial landscape, fostering sustainable economic growth and strengthening the continent’s position in global trade.