Afreximbank Extends 40 Mln Euros Facility To Cameroon’s Prometal

The African Export-Import Bank has extended a 40 million euros revolving working capital facility to Cameroonian industrial group Prometal SA to finance the expansion of its steel manufacturing operations.

The facility agreement was signed on September 28 at Afreximbank’s headquarters in Cairo by Denys Denya, the bank’s senior executive vice-president, and Hayssam El Jammal, chief executive officer of Prometal.

The financing will provide working capital and guarantees for Prometal’s operations as it increases the processing of semi-finished steel into finished products, including agricultural equipment and construction materials.

The facility is expected to strengthen the company’s ability to supply steel and metal products to Cameroon’s construction, infrastructure, industrial and agricultural sectors, where demand for locally produced materials is increasing.

Prometal operates through two main businesses, Prometal Acier and NOVIA Industries. Prometal Acier is the group’s steel and metallurgical business, operating seven industrial plants with combined annual production capacity of about 360,000 tonnes of finished steel products.

NOVIA Industries, established in 2018, is the group’s agribusiness arm. It has production capacity of about 500 tonnes of edible oil and 160 tonnes of soap a day, according to the company.

Prometal has invested in expanding domestic manufacturing capacity and replacing products previously imported into Cameroon, positioning the group as part of the country’s industrialisation and import-substitution efforts.

George Elombi, president and chairman of Afreximbank’s board of directors, said the financing was consistent with the bank’s efforts to support African manufacturers and increase the value generated from resources within the continent.

The bank is seeking to support industrial companies capable of strengthening domestic manufacturing and developing supply chains across African markets, Elombi said.

El Jammal said the financing marked a new stage in Prometal’s expansion and would support its strategy of increasing production within Africa.

The company’s strategy combines vertical integration, from processing raw materials to manufacturing finished products, with expansion into products that are still largely imported into African markets, he said.

Prometal said the approach is intended to increase local production, reduce dependence on imports and retain a greater share of value within African economies.

Source: FSX Business News