The African Import-Export Bank (Afreximbank) has granted a $40 million revolving working capital facility to Cameroon's Prometal SA to support the company's expansion in the steel, metallurgy, and industrial transformation sectors. The funding agreement was signed on September 28 at Afreximbank's headquarters in Cairo between Denys Denya, the bank's first executive vice president, and Hayssam El Jammal, Prometal's president and CEO. This facility will enable Prometal to strengthen its working capital needs while benefiting from the necessary financing and guarantees to pursue its industrial development program.
The funding will support Prometal's efforts to transform locally semi-finished steel into a diversified range of finished products for various sectors, including construction, infrastructure, industry, and agriculture. It will also help increase Prometal's capacity to meet growing regional demand for construction materials, agricultural equipment, and other metallic products that were previously partially imported. This move aligns with Afreximbank's goal of supporting the emergence of African industrial groups capable of transforming the continent's resources locally.
Dr. George Elombi, Afreximbank's president and chairman of its Board of Directors, stated that this transaction reflects the bank's commitment to supporting the growth of African industrial groups. He emphasized that developing companies like Prometal contributes to strengthening Africa's productive capacities and creating national and regional value chains, with the objective of retaining more value-added on the continent.
Hayssam El Jammal, Prometal's president and CEO, viewed this partnership as a new step in the company's growth strategy, which focuses on vertical integration from raw material processing to finished product manufacturing and expansion into new markets. Prometal aims to produce part of the industrial goods still massively imported in Africa to reduce external dependence and support the continent's economic transformation.
Prometal has established itself as one of Cameroon's leading industrial players, with its historical division, Prometal Acier, operating seven industrial sites and having an annual cumulative capacity of approximately 360,000 tons of finished steel products. The company has developed local production to replace several categories of products previously purchased on international markets, consistent with Cameroon's import substitution policy.
In addition to its steel activities, Prometal has diversified its operations through NOVIA Industries, created in 2018 and specializing in agro-industry. The company has an estimated capacity of 500 tons of food oil and 160 tons of soap per day, primarily from refined palm oil and its derivatives. With Afreximbank's new financial support, Prometal aims to consolidate its industrial capacities in Cameroon and its ambitions for expansion in the African market.
The partnership between Afreximbank and Prometal is expected to have a positive impact on Cameroon's economy and the wider African region. By supporting Prometal's growth, Afreximbank is contributing to the development of a more diversified and competitive African industry, which can help reduce dependence on imports and promote economic transformation.
Key points
- Afreximbank grants $40 million to Prometal to boost industrial expansion in Cameroon
- The funding will support Prometal's efforts to transform locally semi-finished steel into finished products
- The partnership aims to promote economic transformation and reduce dependence on imports in Cameroon and the wider African region
