Congo has signed a facility agreement with Afreximbank under which the Bank will provide $250 million in future flow pre-financing to meet Brazzaville’s strategic plan for its oil fields.
Afreximbank President Dr. Benedict Oramah, said that the facility was part of a $1-billion syndicated loan commitment which Congo’s government had mandated Afreximbank to raise for the country to enable it cater for capital investment financing requirements for oil production increases and to also finance trade-related investments in the oil and gas sector.
Dr. Oramah, who noted that the current low oil prices continued to put “unimaginable pressures on governments of oil exporting countries in Africa, including the Republic of Congo”, stated that the Bank had stepped in with innovative programmes to mitigate the adverse impact of those economic shocks on its member states.
Congo’s economy has been severally affected by the slump in oil prices with growth slowing sharply to 1.2% in 2015.
The new facility is expected to support the government to finance and expand upstream oil production activities, expand oil exports and improve foreign exchange earnings.
It will also support productive activities to help it diversify away from oil, and create jobs and improve the people’s living conditions, Oramah added.