African Export-Import Bank (Afreximbank) has approved a US$20.8 million financing facility for Nigeria-based Starlink Global & Ideal Limited to enable the company construct and operate a 30,000-metric tonne per annum cashew processing factory in Lagos.
According to the facility agreement signed in on July 22, 2024, Afreximbank will provide the funds in two tranches with the first tranche of US$7.48 million going toward capital expenditure for the construction of the factory and the second, totalling US$13.25 million, to be later provided as working capital for the operations of the factory.
A news report from African Press Organisation (APO) Group circulated on behalf of the bank, indicated that the facility was expected to promote value addition which will guarantee increased earnings to the company, create about 400 new jobs once the factory becomes operational, and support about 40 small and medium-sized enterprises.
Commenting on the transaction, Executive Vice President, Intra Africa Trade and Export Development, Afreximbank, Mrs. Kanayo Awani, pointed out that by supporting the company to establish a modern cashew processing facility, the lender was making it possible for Africa to add value to its agro-commodities, thereby facilitating exports and subsequent inflow of much-needed foreign exchange into the continent.
She enthused: “We are delighted at this partnership which promises to deliver significant impact on employment in Nigeria. 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.”
