The African Export-Import Bank (Afreximbank) is to support trade finance facilities for Angola to import essential items on letter of credit (L/C) terms. The facilities are part of up to US$2 billion in financing support to Angola.

Afreximbank's president, Benedict Oramah, announced this, alongside a series of support measures for the southern African country during meetings with its President João Manuel Gonçalves Lourenço in the Angolan capital, Luanda.

L/Cs for imports

Oramah said that financing would support the financial services sector by enabling selected Angolan Banks to issue L/Cs to be confirmed by Afreximbank.

The L/Cs would be used to ensure the continuous supply of essential commodities, including food items and pharmaceuticals.

Investment support

The meetings also discussed proposals for US$1 billion to be offered under the bank's Investment Guarantee Refinancing Facility to facilitate private sector investments.

This facility will be offered through designated banks for investments in industrial and non-oil productive activities, including export manufacturing, fishing, agri-business and tourism.

This article represents the views of the author and not necessarily those of the ICC or Coastline Solutions.