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A term sheet agreement worth €210 million has been sealed between the African Export-Import Bank (Afreximbank) and APD-Cameroon.
The financing deal would support the development and operation of a new port terminal in Douala, Cameroon.
The term sheet, according to the agreement, would be covered in two tranches in Euro and Central African Francs (XAF) of up to €147 million, with a proposed Afreximbank participation of €80 million.
The agreement was signed at the just ended Afreximbank Annual Meetings in Nassau, Bahamas.
The new terminal will be an extension of the existing Port of Douala and will consist of two berths to be numbered 53 and 54.
Helen Brume, Director of Project and Asset Based Finance at Afreximbank, said that the facility would help to address the “significant infrastructure financing gap” which remained on the African continent.
“By signing this term sheet, we are committed to helping our countries bridge this gap.
We applaud the initiative of APD-Cameroon, which through its commitment to this project, is helping to promote an innovative financing mechanism through a public-private partnership, thereby, reducing the financial burden of these strategic investments on the government of Cameroon,” Brume said.
She noted that the Port of Douala was a key regional trade gateway for Central African countries which played a strategic role in regional integration by serving as a natural port for landlocked countries like Chad and the Central African Republic.
Marc Tabhcy, Founder and Chairman of APD Cameroon who signed on behalf of his organisation noted: “We are honoured to be part of the expansion and specialization of the Port of Douala by building additional berths that will be dedicated to dry bulk.
The committed resources would allow to develop this critical infrastructure, significantly contributing to the growth of the economy, creating employment opportunities and encouraging inter-African trade.”
The new specialised terminal is expected to help strengthen Cameroon’s position as a leading economic power in the central Africa region.
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