The Government of South Sudan has received a loan of 9 Billion Shillings ($90M) from the Africa Export and Import Bank, commonly known as Afreximbank, to support the country’s 2018/19 budget.
The 2-year trade finance facility will be repaid from the oil revenues and is guaranteed by Trinity Energy Limited, a South Sudanese company specializing in petroleum products and related services.
Receiving the funds on behalf of the Government of South Sudan, the Minister of Finance and Economic Planning, Hon. Salvatore Garang Mabiordit said that the funds will be used to facilitate trade and developmental projects, supporting the budget and also finance social benefits and humanitarian disaster management programmes.
Speaking on the facility, Afreximbank President Dr. Benedict Okey Oramah said the successful completion of the deal has made it possible for the government of South Sudan to join the Bank as a participating state in the regional multilateral institution.
“We are happy to admit South Sudan to Afreximbank fold. As a qualified member, the world’s youngest nation now has access to the range of products and facilities offered by Afreximbank,” Dr. Oramah said.
The transaction was advised by Benchmark Solutions Limited, a Trade and Projects Finance advisory firm which arranges financing options for African governments, financial institutions, and companies across various sectors.
“We are honored to be working with the government of South Sudan and indigenous private sector companies in South Sudan at this critical moment. Our mandate is to transform Africa, one business at a time. We endeavor to position African Institutions to draw maximum benefit from multilateral institutions like The AFREXIM Bank; in this case to support trade and development projects.” said Benchmark Solutions Limited Chief Executive Officer, Laura Akunga MM.
In August, South Sudan’s parliament approved a budget of 81.6 billion South Sudanese pounds ($584M) for the 2018/19 fiscal year, an increase of 75 percent from the previous period. The budget is expected to be partly financed by external creditors and donors.