ARISE IIP Secures Another $450M from Afreximbank to Boost Industrialization in Africa
In support of the #industrialization drive in Africa, the Africa Export and Import Bank (Afreximbank) approved a line of credit facility up to USD 450 million to the benefit of ARISE IIP.
ARISE Integrated Industrial Platforms (#IIP) is a leading developer of industrial parks or Special Economic Zones (#SEZ) in Africa. The company is developing SEZ in several countries across Africa, including, Chad, Cote d’Ivoire, DR Congo, Kenya, Malawi, and Nigeria.
According to the agreement between ARISE IIP and Afreximbank, the funds are destined for the expansion of existing #SEZ, namely, GDIZ in Benin, PIA in Togo, LAHAM in Chad, PEIA in Cote d’Ivoire, and BSEZ in Rwanda. In addition, ARISA is setting up new SEZ in DR Congo, Kenya, Malawi and Nigeria.
“The credit facility reflects our continued commitment to mobilize financial and technical resources to promote the industrialization of Africa. It is our way to support Local Value Addition (#LVA) and the structural transformation of the continent.”
Afreiximbank VP Kanayo Awani
According to ARISE’s plan, SEZ and industrial parks in Africa will require at least an investment of USD 1.7 billion within the next five years. The target is to attract at least 230 entrepreneurs to set up shop in these various SEZ.
Once fully operationalized, the industrialization initiative is expected to generate a value-add of at least USD 5 billion by 2030. At the same time, the program is projected to create 32,000 direct jobs and 138,000 indirect jobs.
“The credit line of $450M represents a major milestone in the industrialization drive across Africa. ARISE is ready to work with strategic partners around the world to bridge the financing gap and accelerate the industrial revolution in Africa.”
ARISE IIP CFO Arvind Arora
One of the flagship cooperation project between ARISE and Afreximbank is the promotion of a comprehensive value chain in textile based on #cotton in Africa. The aim is to bolster local beneficiation of cotton, through the production of cotton yarn and cloth, which in turn can de dyed and sewn into ready-made clothing. The program ambitions to create 500,000 jobs and create USD 5 billion in value-add.
The new line of credit follows a previous one worth USD 400 million which was extended in June 2023. At that time, the primary objective was to set up the Magwero Industrial Park in Lilongwe and another one in Blantyre.
Afreximbank has an impact investment arm called the Fund for Export Development in Africa (FEDA) which has invested USD 300 million so far. Afreximbank firmly believes that in financing of infrastructure upgrade in support of the industrialization process to bolster intra- and extra-African trade.