A €40-million revolving working capital facility from the African Export-Import Bank (Afreximbank) will support Prometal SA’s continued industrial expansion and strengthen local production of steel and other industrial products in Cameroon.
The facility will help the Cameroonian metallurgical and industrial group finance its working capital needs as it expands the processing and transformation of semi-processed steel into finished products. These include agricultural equipment and construction materials.
The financing will also support Prometal SA in meeting rising demand for steel and metal products across Cameroon’s construction, infrastructure, industrial and agricultural sectors. It is expected to strengthen local manufacturing capacity and support efforts to reduce reliance on imported products.
Afreximbank and Prometal SA signed the facility agreement on 28 September at the Bank’s headquarters in Cairo, Egypt. Under the agreement, Afreximbank will provide the financing and guarantees required to support the company’s working capital requirements.
Denys Denya, Senior Executive Vice President of Afreximbank, and Hayssam El Jammal, Chief Executive Officer of Prometal SA, signed the agreement.
Financing local manufacturing and industrial growth
The facility forms part of Afreximbank’s wider focus on supporting African companies that are building local industrial capacity and developing value chains on the continent.
Dr. George Elombi, President and Chairman of the Board of Directors of Afreximbank, said the financing supports the Bank’s efforts to advance industrialisation in Africa.
“This facility is in step with Afreximbank’s commitment to accelerate industrialisation, ensuring that the continent realises maximum value from its natural resources,” he said.
He added that supporting companies such as Prometal SA would help strengthen domestic manufacturing and create value chains within Africa.
“By identifying and capacitating African industrial champions, like Prometal SA, the Bank is strengthening Africa’s domestic manufacturing capacity and creating domestic and regional value chains,” Elombi said.
Prometal SA has made significant investments in local manufacturing over the years. The group has focused on producing goods that were previously sourced from international markets.
This strategy has contributed to import substitution in Cameroon. It has also supported the government’s industrialisation objectives by increasing the country’s capacity to manufacture products locally.
Prometal SA is organised around two main business lines, Prometal Acier and NOVIA Industries.
Prometal Acier is the group’s core steel and metallurgical business. It is a leading player in the regional steel industry. The business operates seven industrial plants and has an aggregate annual production capacity of about 360,000 metric tons of finished steel products.
Expanding production and retaining value in Africa
NOVIA Industries represents the group’s expansion into agribusiness. Established in 2018, the business has grown into one of the leading players in its market segment.
NOVIA Industries has an estimated production capacity of 500 tons of edible oil per day and 160 tons of soap per day. This makes it a significant producer of refined palm-oil products and related by-products.
The latest financing will support Prometal SA’s broader strategy of expanding production across different parts of the value chain and entering new markets.
El Jammal said the partnership with Afreximbank marked a new stage in the company’s growth.
“Today, we are reaching a new milestone and entering a new stage in our growth through this strategic partnership with Afreximbank, which demonstrates the Bank’s continued commitment to turning African industrial ambitions into reality,” he said.
He explained that Prometal’s strategy combines vertical integration with expansion into new markets. The company aims to move further across the value chain, from processing raw materials to producing finished goods.
It also plans to expand into products that are still largely imported into African markets.
“Our mixed-matrix strategy combines, on one hand, vertical integration across the value chain from the processing of raw materials to the production of finished goods, and, on the other hand, horizontal expansion into new markets with the clear ambition of producing in Africa goods that are still largely imported today,” El Jammal said.
He said the approach would help strengthen African production capacity, reduce dependence on imports and retain more value within African economies.
El Jammal also reaffirmed Prometal SA’s commitment to the partnership with Afreximbank and its broader industrial development plans.
The company plans to use the partnership to support its expansion across Africa and contribute to wider industrialisation and economic transformation on the continent.
