African Export-Import Bank (Afreximbank) has approved US$70 million to finance the expansion and upgrade of the Beitbridge border post in Zimbabwe.
President of Afreximbank, Prof. Benedict Oramah, reflecting on the project, said the improvement of the Beitbridge border post was critical to reducing costs associated with traffic delays, and in turn, increasing trade in the Southern Africa region in furtherance of Afreximbank’s drive to boost intra-African trade.
“It is too costly to wait for almost five days at the border to deliver goods and services across Southern Africa,” Oramah said.
“With this facility, we aim to cut indirect and direct costs of trade associated with border post effectiveness and efficiency.”
The Beitbridge Border Post expansion project is funded by African financial institutions that have come together to provide commitments in the syndicated senior term loan facility.
US$70 million is part of the US$204.4 million syndicated senior term loan facility.
Other participating financial institutions besides Afreximbank include the FirstRand Bank Limited, ABSA Limited, Nedbank Limited, Standard Bank of South Africa and The Emerging Africa Infrastructure Fund.
Afreximbank, on the US$70 million, authorised a US$43 million loan, to Zimborders Mauritius Ltd and US$27 million for the issuance of an Investment Guarantee supporting Pembani Remgro Infrastructure Fund to join other investors in Zimborders Mauritius Ltd.
The border post-upgrade will include the procurement of technical equipment and software, modernizing the border post.
The scheme will see Beitbridge town having investments including developing a fire station, residential building units, housing sewer lines, housing electrical supply lines, a reservoir, water pipelines, a wastewater treatment plant, a water pump station and other infrastructure.
Estimates indicate that a truck takes five days to be cleared in the Southern African’s busiest border.
