The African Export-Import Bank (Afreximbank) and Nigeria Export-Import Bank (NEXIM) have partnered to place a Joint Project Preparation Fund worth about $50 million investment for private and public sector entities in Nigeria.

Afreximbank disclosed in a statement made available to Peoples Gazette on Wednesday.

The statement explained that the collaboration was to help Nigeria’s private and public sectors operating in the Nigerian trade sector with early project preparation financing and technical support services.

According to the statement, the Memorandum of Understanding (MoU) signed by the two firms will “unlock investments into sectors such as export manufacturing, agro-processing, solid minerals development and beneficiation services, as well as healthcare, information, and communications technology, and creative industries.”

The fund will also provide both sectors with “technical and financial support services that will result in a steady pipeline of well-structured, bankable projects that Afreximbank, NEXIM, and other financial institutions can readily finance.”

“The fund will assist the early development process of projects from concept stage to bankability by covering the preparation of feasibility studies, project development and advisory services and related costs,” it added.

Speaking on the project, President of Afreximbank, Benedict Oramah, said the fund would enhance bankability and promote intra-African trade.

On his part, the Managing Director of NEXIM, Abubakar Abba Bello, stated that the fund would address challenges in project selection, mainly among SMEs, and issues caused by COVID-19 and the poor economy.