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Tuesday, June 25, 2019

Cameroon – China extends Kribi deep seaport financing to US$ 1billion


cargo-572997_1280China Exim’s largesse should be used to diversify Cameroon’s trade profile

The Export Import bank of China (China EXIM) has approved a US$ 547 million loan to finance the second phase of the deep seaport in Kribi, Cameroon. The first phase of the project, which cost US$ 568 million, was similarly (largely) financed by China EXIM with a 15% participation by the Government of Cameroon. The project, which will take an estimated 42 months to complete, will focus on a linear quay, the extension of the protection dike, the construction of a container terminal and a 30 hectare storage zone. The loan from EXIM China will have a 20 year tenor and will be on concessional terms of 2% a year. Elsewhere, we note that Cameroon’s debt stock has risen sharply (up an estimated 25% to CFAF 6 trillion) since troughing in 2007/08 following its Highly Indebted Poor Country debt completion.

Franc opinion: We believe these infrastructure developments can significantly boost trade volumes out of Cameroon and indeed from the region.We recall that the construction of warehousing capacity forms an important node in structured trade financing and may further help in developing ancillary trade products in the region. We recommend financial intermediares in the CEMAC and Ecowas region track progress and offtake keenly for opportunities.

Contact: editor@franctrade.com

 

 

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2 Responses “Cameroon – China extends Kribi deep seaport financing to US$ 1billion”

  1. SongsFromAbove
    April 21, 2017 at 17:52

    Hmmm. While Cameroon is we doing good to develop its deep seaport should China be in a position to loan Cameroon funds? Are there excavation licenses (perhaps royalty payments) that Cameroon presents to China in order to allow excavation activities undertaken by China in Cameroon? Can these moneys not then go towards paying for the seaport development? Ah. All the possibilities.

  2. SongsFromAbove
    April 21, 2017 at 17:53

    *While Cameroon is doing good…

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FrancTrade provides independent analyses and commentary as well as bespoke commodities market intelligence to global and regional corporate and institutional clients with a stake in the Francophone Africa CFA franc zone. FrancTrade also publishes one-off special reports on commodities and trade in strategic West African markets, including Nigeria and Ghana.