FIDELITY BANK SIGNS AGREEMENT WITH AFRICA FINANCE CORPORATION (Business Page)

May 21, 2010

Story: Mary Mensah
Fidelity Bank Ghana Limited today signed a $20 million trade finance agreement with Africa Finance Corporation (AFC) to facilitate importation of petrolleum products into Ghana.
The Managing Director of Fidelity Bank signed for his company while Mr Andrew Alli, the President and Chief Executive officer of AFC signed for his company.
In an address, Mr Effah expressed satisfaction at his banks partnership with AFC and said the Ghana downstream oil industry is key to the economy.
He said oil-derived products supply 70 percent of Ghana's commercial energy needs and Fidelity Bank is pleased that through this important partnership it will be able to make a significant contribution to the local economy and better enable the delivery of retail petroleum products to the Ghanaian consumers.
On his part, Mr Alli said as a non-oil producing country for now, the Ghanaian Economy is heavily dependent on oil imports which consume a considerable portion of the government's annual budget.
He said this situation will no doubt change for the better once current operational and financial challenges in the oil refining sector are overcome adding that as a private sector-driven organisation AFC is pleased to be able to play a significant role in a trade finance deal of this kind, whose outcome will have positive implications for the local economy.
He said the AFC is an African led financial institution with the mission to improve African economies by proactively creating, developing and financing infrastructure, industrial and financial assets. Among other projects in which it is involvedd,
AFC is the lead investor in Cenpower Generation Company Limited which is implementing the $450 million Kpone IPP project - a 340 megawatt combined cycle gas turbine power plant in Tema, Ghana.
AFC is also the main African participant in a seven year USD$ 750 million syndicated reserve base lending facility to develop the landmark Ghanaians Jubilee Oil Field - West Africa's largest offshore deepwater find in over a decade.
AFC has also invested in and acquired a minority stake in the international firm seven energy limited. Seven Energy through its local subsidiary in Nigeria, Septa Energy Limited, is playing a critical pioneering role in developing gas for domestic use in Nigeria. Its operations are also expected to have a significant and positive effect on other key sectors of the Nigerian economy such as power.