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African Export-Import Bank (Afreximbank) has extended a $45.6 million revolving working capital facility to Prometal SA, a Cameroonian metallurgical and industrial group.
The two sides signed the agreement on 28 September at Afreximbank’s headquarters in Cairo, Egypt. Denys Denya, Senior Executive Vice President of Afreximbank, and Hayssam El Jammal, Chief Executive Officer of Prometal SA, signed for their organisations.
Under the deal, Afreximbank will provide the financing and guarantees Prometal SA needs to meet its working capital needs.
“Today, we are reaching a new milestone and entering a new stage in our growth through this strategic partnership with Afreximbank. Our mixed-matrix strategy combines vertical integration across the value chain, from the processing of raw materials to the production of finished goods, with horizontal expansion into new markets. The clear ambition is to produce in Africa goods that are still largely imported today. In doing so, we aim to strengthen African production capacity, reduce dependence on imports and retain greater value within our economies,” said Hayssam El Jammal, Chief Executive Officer of Prometal SA.
Prometal SA is a metallurgical and industrial group with a growing presence in the industry. The group has invested in local manufacturing to reduce reliance on imports in Cameroon, aligning with the government’s industrialisation goals.
Prometal SA has two main business lines: Prometal Acier and NOVIA Industries. Prometal Acier focuses on steel and metallurgy and operates seven industrial plants with an annual production capacity of about 360,000 metric tons of finished steel products.
NOVIA Industries, established in 2018, has entered the agribusiness sector and has quickly become a notable player. It produces 500 tons of edible oil and 160 tons of soap per day, making it a significant manufacturer of refined palm oil products and related by-products.
“This facility is in step with Afreximbank’s commitment to accelerate industrialisation, ensuring that the continent realises maximum value from its natural resources. By identifying and capacitating African industrial champions, like Prometal SA, the Bank is strengthening Africa’s domestic manufacturing capacity and creating domestic and regional value chains,” said Dr George Elombi, President and Chairman of the Board of Directors of Afreximbank
The facility will help Prometal SA turn semi-processed steel into finished products, including agricultural equipment and construction materials. It will also help the group meet rising demand for steel and metal products in Cameroon’s construction, infrastructure, industrial and agricultural sectors.
Last week, Afreximbank issued a $29 million guarantee to BSMART Technology Ltd to support the implementation and scaling of the EAC Customs Bond.
Around that time, Afreximbank together with Africa Trading and Distribution Company (ATDC) signed a $500 million Global Credit facility agreement to support the trade, movement and distribution of commodities and products across African and global markets.
During the second week of September, African Export-Import Bank also extended a $10 million finance facility to Azania Bank of Tanzania to improve access to finance for small and medium-sized enterprises (SMEs) across the country’s export value chains and to strengthen their role in regional and international trade.
