NAIROBI, Kenya, Sept 27 – The Government of South Sudan has received $90M loan 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 the funds will be used to facilitate trade and developmental projects and “support the budget and finance social benefits and humanitarian disaster management programmes.”
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.
In August, South Sudan’s parliament approved a budget of 81.6 billion South Sudanese pounds ($584 million) for the 2018/19 fiscal year, an increase of 75 per cent from the previous period. The budget is expected to be partly financed by external creditors and donors.