Afreximbank: $20 billion needed to improve railway system in Africa
The African Export-Import Bank (Afreximbank) on Friday signed a memorandum of understanding (MoU) with Russian Railways and the Russian Export Center (REC), agreeing to cooperate in implementing export and investment projects in the railway sector in Africa.
Under the terms of the MoU, the parties will cooperate by undertaking mutual consultations on export and investment projects in the railway sector abroad and by jointly developing project financing schemes in the sector.
Prof. Benedict Oramah, President of Afreximbank, signed the document on behalf of the Bank while Oleg Belozyorov, Director General of Russian Railways, and Andrey Slepnev, Director General of REC, signed for their respective organisations.
Speaking after the signing, Prof. Oramah cited the huge demand for infrastructure in Africa and said that the continent needed investments of $20 billion per annum in the rail sector in order to bring it up to required level.
He said that Afreximbank’s role as to find partners that would help it to deliver the necessary investment in Africa. The signing of the MoU would enable Russia to begin to participate in the opportunities that existed in Africa, he added.
Mr. Slepnev described the signing of the MoU a demonstration of practical collaboration among the institutions and expressed confidence that it would bear fruit.
Russian Railways is reputed for developing and advancing technologies and techniques for effectively managing railway systems.
