The African Export-Import Bank (Afreximbank), which provides a range of letter of credit (L/C) offerings, is in discussions to provide financing for transactions valued at about US$100 million in Comoros, the bank's president Benedict Oramah says.

Oramah was speaking during a visit of an Afreximbank delegation to President Azali Assoumani of Comoros.

Additional support

In the longer term, Afreximbank may provide up to US$300 million in additional financing to the country.

Oramah told Assoumani that discussions were underway with the finance ministry of Comoros and with Banque Centrale des Comores (BCC - central bank) towards Afreximbank providing up to US$20 million to support trade.

"We are also discussing with a local group that is trying to set up an airline in order to provide it with the financing it needs to enable it acquire aircraft to operate local routes," he added.

L/C offerings

Afreximbank provides L/C confirmation under its Line of Credit Programme to creditworthy African and non-African banks active in African trade finance.

The bank's Reimbursement Guarantee meanwhile covers the payment risk of African and non-African banks under L/Cs or other acceptable trade debt instruments.

Comoros joined Afreximbank as its 46th participating state in 2017.

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