Afreximbank Okays $20.8m for Cashew Processing Factory in Lagos

By Adedapo Adesanya

A $20.8 million financing facility has been approved by the African Export-Import Bank (Afreximbank) for Nigeria-based Starlink Global and Ideal Limited to enable the company to construct and operate a 30,000-metric tonne per annum cashew processing factory in Lagos.

The facility is expected to promote value addition which will guarantee increased earnings to the company while also fostering the creation of about 400 new jobs once the factory becomes operational. It is also expected to support about 40 small and medium-sized enterprises (SMEs).

In a disclosure on Friday, the Cairo-based lender said the facility agreement was signed on July 22, 2024, with the funds to be provided in two tranches.

The first tranche of $7.48 million will be released for the construction of the factory and the other $13.25 million to be deployed as working capital for the operations.

Commenting on the transaction, Mrs Kanayo Awani, Executive Vice President, Intra Africa Trade and Export Development, Afreximbank, said that by supporting Starlink Global to establish a modern processing facility, Afreximbank 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.

“We are delighted at this partnership which promises to deliver a significant impact on employment in Nigeria. It will contribute to value creation and 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,” she added.

It is part of the bank’s effort to deploy innovative structures to deliver financing solutions that support the transformation of the structure of Africa’s trade and accelerate industrialization and intra-regional trade, thereby boosting economic expansion in Africa.