Afreximbank Approves $20.8 Million Financing for Cashew Processing Factory in Nigeria

Mrs. Awani expressed optimism about the partnership, highlighting its potential to make a substantial impact on employment in Nigeria.

The African Export-Import Bank (Afreximbank) has approved a $20.8 million financing facility for Starlink Global & Ideal Limited, a Nigeria-based company. This funding aims to construct and operate a 30,000-metric tonne per annum cashew processing factory in Lagos.

Facility Agreement Details

The facility agreement, signed on July 22, 2024, will see Afreximbank disburse the funds in two tranches. The first tranche of $7.48 million is designated for capital expenditure to construct the factory, while the second tranche, totaling $13.25 million, will serve as working capital for the factory's operations.

Economic Impact and Job Creation

This financing facility is poised to enhance value addition in Nigeria's agro-commodity sector, which is expected to increase the earnings of Starlink Global significantly. The factory is projected to create approximately 400 new jobs upon becoming operational and will also support around 40 small and medium-sized enterprises in the region.

Comments from Afreximbank Officials

Mrs. Kanayo Awani, Executive Vice President for Intra Africa Trade and Export Development at Afreximbank, commented on the significance of this transaction. She stated that supporting Starlink Global in establishing a modern processing facility enables Africa to add value to its agro-commodities. This initiative will facilitate exports and generate much-needed foreign exchange for the continent.

Mrs. Awani expressed optimism about the partnership, highlighting its potential to make a substantial impact on employment in Nigeria. She added, "It will contribute to value creation and to the development of the local community while also improving the lots of smallholder farmers and small business suppliers that will work with Starlink across the value chain."

This strategic investment reflects Afreximbank's commitment to fostering economic growth and enhancing the value of African agricultural products, ultimately contributing to sustainable development across the continent.