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Afreximbank Backs Djibouti’s Oil Jetty, Depot Devt Projects with $120m Facility

The African Export-Import Bank (Afreximbank) says it has disbursed a $120-million facility to finance Djibouti’s jetty and bulk port development projects at Damerjog Free Trade Zone.

The deal was announced on Monday after Djibouti’s President Omar Guelleh met with Afreximbank President Benedict Oramah (Prof) on the sidelines of the African Union summit in Nairobi.

Per Afreximbank, the finance disbursed to the state-owned Great Horn Investment Holding (GHIH) is part of a total facility amount of $155 million. The remaining $35 million is being financed through BCIMR Bank of Djibouti.

Proceeds of the facility will be used for the completion of the Damerjog Oil Jetty, which will provide marine connectivity to the free trade zone.

It will also finance the construction of a 150,000m³ first storage depot/oil tank farm, as well as other costs related to the projects.

Afreximbank Chief Oramah said the deal would ensure the implementation of critical trade enabling infrastructure to support bulk handling of liquid products” in the region.

“The establishment of a jetty and bulk port in the Djibouti Free Trade Zone will add significant value to Djibouti’s role as a trans-shipment hub for neighboring landlocked countries,” he added.

Djibouti’s economy is largely based on the provision of marine services to neighboring nations, particularly Ethiopia.

“We’re meeting this growing demand by delivering the infrastructure necessary to support and enhance the economic and efficient movement of petroleum products in the region whilst developing a core economic belt with Ethiopia,” GHIH’s Chairman Aboubaker Hadi Omar.

“It shows that our Head of State’s vision ‘Djibouti 2035’ is taking place thus transforming Djibouti as a regional logistic hub,” he added.

GHIH, an investment firm responsible for logistics and transportation infrastructure, holds interest in about 18 of the largest state-owned companies in the country.