Afreximbank extends €40M facility to Cameroon steelmaker Prometal
What's the deal? The African Export-Import Bank (AfreximbankDealroom has a profile for this one. Try Dealroom →) has extended a €40 million revolving working capital facility to Cameroonian metallurgical group Prometal SA. The two sides signed the agreement on September 28 at Afreximbank's headquarters in Cairo. Under the deal, the bank will provide the financing and guarantees needed to cover Prometal's working capital.
What's the endgame? The facility supports processing semi-processed steel into finished products, including agricultural equipment and construction materials. It also aims to boost Prometal's capacity to meet growing demand across Cameroon's construction, infrastructure, industrial, and agricultural sectors.
Who's raising? Prometal SA is a metallurgical and industrial group organised around two business lines: Prometal Acier and NOVIA Industries. Prometal Acier runs seven industrial plants with a combined annual capacity of roughly 360,000 metric tons of finished steel products. NOVIA Industries, launched in 2018, marks the group's move into agribusiness.
Why now? Chief executive officer Hayssam El Jammal said the facility marks "a new stage in our growth," describing a strategy that combines vertical integration across the value chain with horizontal expansion into new markets. The aim, he said, is to produce in Africa goods that are still largely imported.
The signal: Afreximbank framed the deal as part of its push to accelerate industrialisation and reduce Africa's import dependence. "By identifying and capacitating African industrial champions, like Prometal SA, the Bank is strengthening Africa's domestic manufacturing capacity," said Dr. George Elombi, the bank's president and chairman.
Read more: afreximbank.africa-newsroom.com
Image credit: Shook Photos
