The Government of South Sudan has received a Ksh9 billion loan from the Africa Export and Import Bank (Afrexim) to shore up the country’s budget for the financial year 2018/2019.
According to a statement sent to newsrooms, the two year trade finance facility will be repaid with revenue generated from sales from oil to be drilled from South Sudan’s vast fields.
The Afrexim bank loan to South Sudan is guaranteed by Trinity Energy Limited, a South Sudanese company that deals in oil.
While receiving the funds on behalf of his government, South Sudan’s Minister of Finance and Economic Planning Salvatore Garang Mabiordit said, “The money will finance developmental projects, plug budget deficit, provide social benefits and mitigate the effects of humanitarian disaster.”
Afreximbank president Benedict Oramah said that as part of the agreement, South Sudan joins the bank as a participating state in the regional multi-lateral institution.
“We are happy to admit South Sudan to the Afriexim fold. South Sudan becomes the youngest to have access to the wide range of products and facilities offered by the Afriexim bank,” said Mr. Oramah.
The funding was acquired on the advice of Benchmark Solutions Limited, a trade and projects advisory firm which arranges financing for African governments, financial institutions and companies across various sectors.
“We are hounoured to be working with the government of South Sudan and the country’s private companies at this critical moment. We endeavor to position African countries and organisations to benefit from multi-lateral institutions like Afriexim bank,” said Benchmark Solutions Limited CEO Laura Akunga.
Benchmark Solutions also participated in arranging a loan and grant for South Sudan from the African Development Bank (AfDB) to support the country’s membership subscription to the African Trade Insurance (ATI) and Trade and Development Bank (TDB).