The 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 $7.48M going toward capital expenditure for the construction of the factory and the second, totalling $13.25M to be deployed as working capital for the operations of the factory.
The facility is expected to promote value addition, while enabling the creation of about 400 new jobs once the factory becomes operational and supporting about 40 small and medium-sized enterprises.
According to a statement by Afreximbank, with its support for the Nigeria-based company to establish a modern processing facility, the Bank is 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.
Speaking on the transaction, the Executive Vice President, Intra Africa Trade and Export Development, Afreximbank, Mrs. Kanayo Awani, said “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.”