EnterpriseSG partners African Export-Import Bank to expand financing access for Singapore companies
This is the first partnership between the agency and a multilateral development bank
SINGAPORE companies will soon have greater access to financing when they expand to Africa, thanks to a new agreement between Enterprise Singapore (EnterpriseSG) and African Export-Import Bank (Afreximbank).
This is the first partnership between the Singapore government agency and a multilateral development bank, as part of its Enterprise Financing Scheme-Multilateral Development Banks.
The scheme seeks to enable Singapore enterprises to access financing more readily across all stages of growth – whether in developing new capabilities, creating new products or expanding its business footprint abroad.
Through the scheme, EnterpriseSG will provide risk sharing of up to 50 per cent to support lending to Singapore companies from partner multilateral development banks. These include working capital, fixed assets, trade projects, and mergers and acquisitions.
With this, Singapore companies will be able to tap new sources of financing from one of the key lenders in Africa when expanding overseas to the countries in the continent, said EnterpriseSG and Afreximbank in a joint press statement on Tuesday (Oct 15).
Beyond financing, local companies can also leverage Afreximbank’s Africa Trade Gateway, a digital match-making platform that connects them with partners, investors and financiers in Africa.
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Afreximbank’s executive vice-president for Global Trade Bank Haytham ElMaayergi said its partnership with EnterpriseSG is aligned with the multilateral development bank’s strategy to drive expansion and diversification of African trade.
It will serve as a gateway to Africa for Singapore businesses, providing access to tailored financing and de-risking solutions, leveraging on goodwill, expertise and knowledge of the African continent, he said.
“In this regard, we support the growth of Singapore businesses while driving Africa’s industrialisation and trade development, in line with our vision to expand the continent’s share of global trade,” he said.
Geoffrey Yeo, EnterpriseSG’s assistant managing director for capabilities, urban systems and solutions, added that venturing into new markets can be challenging for many businesses.
“This partnership between EnterpriseSG and Afreximbank will enable Singapore businesses to leverage Afreximbank’s financing solutions, extensive network and deep understanding of African markets,” he said.
“This will be invaluable to Singapore businesses as they navigate and expand internationally in markets such as Africa.”
EnterpriseSG’s partnership with Afreximbank follows an earlier agreement with Credit Europe Bank, in a move to strengthen funding access for Singapore companies venturing abroad.
Announced last week, that was the agency’s first partnership with a foreign-based financial institution, also under the Enterprise Financing Scheme.
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