Afreximbank grants 40 million euros to Prometal SA

Afreximbank has granted a 40 million euro (approximately 26.2 billion FCFA) renewable working capital facility to Prometal SA, a Cameroonian metallurgy and industrial group. The agreement was signed on September 28 in Cairo, Egypt, by Afreximbank Executive Vice President Denys Denya and Prometal CEO Hayssam El Jammal.

The financing is intended to support the group's industrial expansion and production capacity, specifically to fund the importation of steel billets. These semi-finished products are processed into finished goods such as agricultural equipment, construction materials, rebar, and machine wire. This move aims to meet demand in Cameroon's construction, infrastructure, and agricultural sectors.

However, the funding highlights a challenge within the local industry. According to the Cameroonian Organization of Metal Transformation Industries (Ocitram), local scrap metal only covers about 40% of the industry's needs, forcing companies to import up to 60% of their required billets. While the financing secures operations for Prometal's seven plants, industry observers note that some mills are currently operating at roughly 50% capacity amid a saturated domestic market.