Afreximbank approves $200m for Telecom Egypt for cross-border marine cable

The African Export-Import Bank (Afreximbank) says it will commit up to $200 million to Telecom Egypt to enable the firm acquire a cross-border marine cable.

A statement issued on Wednesday by Mr Obi Emekekwue, the bank’s Director and Global Head, Communications and Events Management Department, quoted Dr George Elombi, the bank’s Executive Vice-President as making the disclosure in Cairo.

Elombi, who is the Executive Vice-President, Governance, Legal and Corporate Services, said the working capital was done under a deal coordinated by the Abu Dhabi Islamic Bank in Egypt.

He said that the cable would enhance the volume of internet flow into Egypt and other African countries, and to finance working capital needs of the company.

Besides, he said that the cable would support Egypt’s plan to become a regional hub for internet and telecommunication services for other African countries.

“The transaction will strengthen transmission services by local and international operators through Telecom Egypt’s partial and full ownership in the consortiums of undersea cables.

“The undersea cables carry telephone, internet, multimedia and broadband data applications between Africa and other regions,” Elombi said.

According to the statement, Elombi, signed the agreement on behalf of Afreximbank while Ahmed El Beheiry, Managing Director and Chief Executive Officer of Telecom Egypt, signed on behalf of his organisation.

El Beheiry described the facility as an integral step in providing the necessary liquidity to finance the firm’s working capital requirements and the necessary funding for investment at the lowest possible cost.

Since inception in 1993, Afreximbank has approved and disbursed credit facilities totaling about $14 billion in favour of Egypt’s corporate and financial institutions.

Afreximbank is the foremost pan-African multilateral financial institution devoted to financing and promoting intra-and extra-African trade.

The bank was established in October, 1993 by African governments, African private and institutional investors and non-African investors.

The bank has its headquarter in Cairo.