BY CHIKA OKEKE, Abuja
The African Export-Import Bank (Afreximbank) has approved a $28 million dual-tranche facility for the leading Uganda-based engineering, procurement and construction (EPC) contractor, DOTT Services Limited.
This is even as the bank has commenced disbursing funds to support the execution of its EPC projects pipeline, valued at more than $550 million.
Provided under Afreximbank’s EPC Contract Promotion Initiative, the facility is designed to strengthen the capacity of African EPC champions to secure and execute large-scale infrastructure projects across the continent.
The financing is intended to support DOTT Services Limited in executing contracts and pursuing near-term opportunities valued at approximately $550 million across Uganda, Tanzania, Kenya and the Democratic Republic of Congo.
Director of Regional Operations at Afreximbank’s Eastern Africa office, Mr. Humphrey Nwugo noted that the intervention reflected Afreximbank’s commitment to building strong African EPC champions capable of delivering the infrastructure that underpins Africa’s industrialisation, trade and economic integration.
By supporting DOTT Services Limited, a well-established regional contractor with operations across five African countries, the bank is addressing a critical financing gap that has historically constrained the ability of African firms to participate meaningfully in large-scale, cross-border infrastructure projects.
The financing will enhance DOTT’s capacity to execute strategic projects across the continent, facilitate intra-African trade in goods and services and strengthen regional value chains. It also advances Afreximbank’s EPC Contract Promotion Initiative, which seeks to increase African participation in the development and delivery of Africa’s infrastructure.
Nwugo said: “Through partnerships such as this, we are ensuring that greater value, expertise, employment opportunities and economic benefits are retained within Africa while fostering the emergence of globally competitive African contractors.”
He disclosed that most local commercial banks lacked the capacity to support intra-African and regional projects as they were poorly placed to absorb the associated cross-border risks, while international banks tended to prioritise non-African contractors.
“Afreximbank’s EPC Initiative was therefore designed to address this challenge by supporting African EPC contractors in securing and executing a greater share of infrastructure contracts across the continent. Through the initiative, the bank provides support, including financing, twinning and matchmaking, as well as issuing letters of support, among others”, he added.
DOTT Services Limited presence in Africa spans 28-years, with operations in Uganda, Tanzania, South Sudan, Zambia, and the Democratic Republic of Congo (DR Congo). It also has European offices in Italy and the UK, and a workforce of over 6,000 people.
The company's track record of promoting trade-supporting infrastructure across the continent makes it a natural partner for Afreximbank’s EPC Contract Promotion Initiative, which seeks to build African EPC champions capable of delivering the infrastructure that underpins intra-African trade.
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