Prometal Afreximbank: CFA26.2 Billion Steel Financing Secured

• Prometal SA, a subsidiary of Prometal Groupe, secured a €40 million (CFA26.2 billion) revolving working-capital facility from Afreximbank.
• The financing is intended to fund Prometal's raw-material needs, specifically imports of steel billets and other intermediate steel products.
• The agreement was signed in Cairo, Egypt, on September 28, 2026, by Denys Denya of Afreximbank and Hayssam El Jammal of Prometal Groupe.
• This facility helps Prometal, Central Africa’s leading steel producer, address a shortage of locally available scrap metal.

For legal professionals advising clients in the manufacturing or heavy industry sectors across Central Africa, this Prometal Afreximbank CFA26.2 billion steel financing serves as a significant precedent.

Prometal SA, a prominent subsidiary of Prometal Groupe, has successfully secured a substantial revolving working-capital facility from the African Export-Import Bank (Afreximbank). This significant Prometal Afreximbank CFA26.2 billion steel financing amounts to €40 million, equivalent to CFA26.2 billion, and is specifically earmarked to address the company's critical raw-material requirements. The Prometal Groupe Afreximbank loan underscores a strategic move to bolster the operational capabilities of Central Africa’s leading steel and metal producer.

The primary objective of this CFA26.2 billion Prometal facility is to finance the import of essential steel billets and other intermediate steel products. These materials are crucial for Prometal's manufacturing plants, ensuring a steady supply chain for its production processes. The nature of the facility as a revolving working-capital arrangement provides Prometal with the flexibility needed to manage its ongoing procurement of these vital inputs, which are fundamental to its output of reinforcing bars and other finished steel goods.

This strategic Prometal steel raw materials funding arrives at a critical juncture for the regional industry. The steel sector in Central Africa is currently grappling with a notable scarcity of locally available scrap metal, a key component in traditional steel production. By securing this Afreximbank working capital, Prometal is directly addressing this supply chain vulnerability, ensuring its continued operational efficiency and market presence.

The financing's focus on importing steel billets is particularly pertinent given the current market dynamics. Billets, which are typically manufactured by melting scrap iron into ingots or bars before further processing, serve as a foundational intermediate product for a wide array of steel items. This approach allows Prometal to circumvent the domestic scrap metal shortage, maintaining its production capacity for essential construction materials like reinforcing bars and other fabricated steel products. This move highlights the evolving strategies within Central Africa steel industry finance to overcome regional resource limitations.

The agreement for this crucial financing was formally concluded in Cairo, Egypt, on September 28, 2026. The signing ceremony saw key representatives from both institutions, with Denys Denya, Senior Executive Vice President – Finance, Administration and Banking Services of Afreximbank, and Hayssam El Jammal, CEO of Prometal Groupe, affixing their signatures to the deal. The African Export-Import Bank subsequently issued a public statement regarding the facility on September 30, confirming the details of the arrangement.

This partnership represents more than just a financial transaction; it signifies a strategic alignment for growth, as articulated by Prometal's CEO. For legal professionals advising clients in the manufacturing or heavy industry sectors across Central Africa, this Prometal Afreximbank CFA26.2 billion steel financing serves as a significant precedent. It demonstrates a viable pathway for securing substantial raw material funding, especially in an environment marked by supply chain disruptions and the increasing involvement of major regional development banks like Afreximbank. Compliance officers should also monitor such deals closely for insights into market trends and evolving due diligence requirements within the region's industrial financing landscape.

Lawyers advising clients in the manufacturing or heavy industry sectors in Central Africa should note this significant working capital facility as a precedent for securing raw material financing, especially given current supply chain challenges and the involvement of a major regional development bank like Afreximbank. Compliance officers might also track such deals for market trends and due diligence purposes.

Source: Reporting based on industry news.