AFREXIMBANK TO FUND AVIATION IN AFRICA

Pan-African bank Afreximbank set aside US$20bn to support Aviation in Africa

African Export-Import Bank (Afreximbank) yesterday unveiled a special credit facility for airlines and governments seeking funds to buy Russian-made commercial aircraft.

Global head of client relations for the bank, Rene Awambeng said it struck a deal with Russian Export Sector (REC). The deal is to help fund African-based operators to make the purchases.

Afreximbank have provided US$20bn to support African airlines including national flag carrier Kenya Airways. The Bank also promise to provide further funds to improve aviation infrastructure.

African airlines usually buy aircraft from western firms, majorly US Boeing and European Airbus. However, old Soviet-era cargo planes still operate in the African airspace.

Mr. Awambeng of Afreximbank said influencing factors for the provision of the facility include; increased intra-Africa trade, aviation infrastructure and also availability of higher disposable incomes among Africans.

The credit facility will help to achieve effective movement of goods and people as it is especially fundamental to Africa’s trade, growth and development. Improving  international, regional and domestic air transport is therefore a priority.

In line with the deal, Russian civil aircraft, as well as manufacturers of air traffic control equipment, were in Kenya as part of a three-country intra-Africa roadshow to meet public and private sector aviation stakeholders to promote the Russian aviation industry products.