The International Finance Corporation (IFC) is set to provide $35 million as part of a $200 million credit facility arranged by Societe Generale to aid Addax Energy SA in delivering critical energy imports to Mauritania.
The World Bank group member will help Mauritania secure these imports to help cushion the effect of the COVID-19 pandemic on the Sahel region country in Africa who heavily depends on imported petroleum.
The pandemic has posed a threat to the economic activities in major sectors of the country. This is a palliative to help sustain the economy that has been predicted by the International Monetary Fund (IMF) to go into recession in 2020.
The announced investment builds upon a $225 million two-year loan facility committed by IFC, Societe Generale and three other financial institutions in 2018. This investment is part of the Corporation’s global COVID-19 funding support package intended to help their client firms and other small firms they support hit by the pandemic. It shows the commitment of the group to support the Sahel region which in addition to the coronavirus has been facing security challenges.
The loan will help to finance the purchase, transportation, storage and sales of petroleum products in the country. It will also help important sectors of the country’s economy such as the Agriculture sector, the mining sector and other sectors.
Speaking on the step by the IFC, Addax Energy SA Chief Financial Officer, Stephen Paris said “Addax Energy S.A., has been, for more than 30 years, one of the longest-established and a reliable supplier of petroleum products and energy in Africa. We are extremely proud to have been selected for the third time in a row as the key supplier of petroleum products to Mauritania. We are also greatly appreciative of our partnering banks, and IFC’s renewed trust and support especially in these times of oil market volatility and COVID-19 pandemic challenges.”
The West and Central Africa director of IFC, Aliou Maiga said “The facility is critical for Mauritania’s economy and will help mitigate some of COVID-19’s negative economic impacts by safeguarding the continuous flow of energy in the country and avoiding a major disruption in the supply chain. Supporting the private sector during these difficult times will help ensure economic stability and preserve jobs.”
The pandemic has endangered employment and investment in the country and this investment will help to sustain jobs and bring a balance to the country’s economy.
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